German Economy to See Only Moderate Growth, External Risks Still Weigh

In its latest monthly report, the German finance ministry highlighted that Germany could experience only moderate growth in the near future on account of external risks even though exports have stabilized. The manufacturing sector, one of Germany’s key growth drivers, has witnessed considerable weakening as a result of global trade tensions and an overall decline in global economic growth.

The finance ministry states in its latest monthly report, “Given the weakening global economic momentum and persistent external risks (for trade), exports are likely to continue to develop only moderately.”

On the positive side, employment remains at record high levels while wage growth also remains strong, supporting private consumption. Strong domestic consumption and construction activity as well as government spending have supported the economy, preventing Germany from falling into recession even as external risks continue to exert pressure.

The ongoing US-China trade war, Brexit uncertainties and weakness in global economic growth are likely to continue into the near future with no resolution just yet. Destatis is due to release GDP figures tomorrow which will shed more light on the state of the German economy.

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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