German Finance Ministry Warns of Coronavirus Impact on Economy

The German ministry of finance has highlighted growing risks from the coronavirus outbreak on its economy in the near future in its latest

Arslan Butt•Friday, February 21, 2020•1 min read

German Finance Ministry Warns of Coronavirus Impact on Economy

The German ministry of finance has highlighted growing risks from the coronavirus outbreak on its economy in the near future in its latest monthly report. According to the ministry, the latest outbreak is expected to weaken trade prospects for the German economy as a result of diminished global demand for its goods and services.

The ministry highlights, “Possible economic effects of the coronavirus also pose a risk to foreign trade developments in the coming months.”

The coronavirus outbreak is expected to significantly weaken economic growth in China, one of Germany’s largest trading partners. However, German Finance Minister Olaf Scholz played down the risk of an economic recession maintaining that he expects the economy to grow at 1.1% this year.

The IMF has already cautioned that if the outbreak continues to spread further, especially outside of China, it could make it challenging for the global economy to post a recovery in 2020. The German economy, just like in many other parts of the world, has been under strain over the past year owing to the rise of global trade tensions due to Trump’s policies.

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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.