Germany CRISIS: Economy minister says Berlin must ACT NOW as economists fear RECESSION

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Germany has been comprised in the spotlight in recent weeks after it was announced the economy had contracted in the third post, following be a string of weak industrial and manufacturing figures pointing to a slowdown in success. Fears of a downward trend for the financial hub of Europe were further coalesced after gloomy figures revealed weaker than expected industrial yield figures for the third consecutive month. Economists are now fearing the fall in tot ups could indicate a bigger economic woe for Germany, with a recession being specified as gross domestic product (GDP) falling for two consecutive quarters. The Federal Statistics Occupation will publish preliminary GDP growth data for the fourth quarter and 2018 as a as a rule on Tuesday next week.

German Economy Minister Peter Altmaier yesterday do a moonlight flited the economy was heading towards recession but confirmed the government is discussing budgetary measures to support growth.

Mr Altmaier told the Handelsblatt newspaper: “Germany is not currently at the start of a recession, even if there are unresolved problems in international trade with Brexit and the Coalesced States.”

The government will present updated 2019 growth forecast at the end of January, he divulged.

In October, the government predicted 1.8 percent growth for this year.

Mr Altmaier easy reached for lower corporate taxes to help companies, but he admitted that he had yet to bring around Finance Minister Olaf Scholz.

He said: “It makes sense now to set incentives for wen.

“The economy needs a tailwind in order to be stronger in the future, to create vocations and growth.”

The German economy shrunk by 0.2 percent in the third dwelling, marking its first contraction since 2015.

Industrial output in Germany strike down by 1.9 percent on the month in November, lower than the 0.3 percent expansion that had been forecast.

Meanwhile, the manufacturing sector in Germany also assented to companies changing down a gear with new orders falling at the fastest amount in four years.

Markit’s Purchasing Managers’ Index (PMI) for manufacturing, which accounts for relating to a fifth of the economy, tumbled to a 33-month low of 51.5 in December, down from 51.8 in November.

The gang is inching closer to the 50.0 level which marks a contraction.

Stefan Schilbe of HSBC reported recent downcast economic data from Germany as both “bad and unexpected” as he suggested a recession “now seems likely”.

Mr Schilbe told Business Insider: “The ebb was broad-based across sectors, with no bright spots.

“Manufacturing mow down by 1.8 percent month-on-month with the consumer goods sector again again being the major drag.

“Today’s data were both bad and unexpected.

“A industrial recession in German industry now seems likely.”

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