Bundesbank Feeling Pessimistic on German Economy
A while ago, we posted the manufacturing figures from Europe. Manufacturing weakened further in all major countries, especially in Germany, where the contraction has been really deep for an extended period.
Bundesbank came out with its monthly report and they see the situation getting worse. Below are the main comments from Bundesbank:
Comments by Bundesbank
- German economic output could stagnate in Q4 2019
- Domestic economy has been surprisingly robust recently
- But decline in production of export-reliant industry is likely to continue
- Companies in Germany are now more reluctant to invest
So, the economic output could stagnate according to them, but if it stagnates, it will probably contract as well, since it is pretty close. Domestic economy has been robust recently they say, but Germany is heavily dependent on exports, especially industrial and manufactured goods.
Besides that, companies are reluctant to invest, which will impact the economy negatively further next year. By the way, Germany is still deciding on 5G, with US and China battling to get a stronghold in Europe.
Comments by a German interior ministry spokesman, cited by Bloomberg
- Legislation on 5G network will take a while
- 5G security rules to take ‘some time’
- Any decision on 5G ruling will be based on security, not industry interests