“Germany’s prospects are ‘fragile’, as German Finance Minister Christian Lindner said.” This is what we read in an analysis by the Financial Times entitled “From locomotive to Europe’s weak link: Germany’s economy is faltering”. The “largest economy in Europe”, reads the British newspaper, “is experiencing a series of shocks that negatively affect its economic situation”. In addition to soaring inflation and rising energy prices, “persistent supply chain problems and weaker global demand weigh heavily on the industrial sector”. The most worrying aspect is “how widespread is the weakness of the economy”. If in other phases services have suffered but not industry, and vice versa, now “this weakness affects every sector”. While “Italy, Spain and France – writes the FT – have recorded more robust growth than expected, thanks to a boom driven by tourism, Germany must rely more on domestic demand, but with consumers struggling with inflation a lot high, spending and confidence weakened. Retail sales fell by 8.8% compared to last year: the largest reduction ever recorded “. Between the first and second quarters, highlights the London newspaper, the Germany “stalled, while the eurozone as a whole grew 0.7%. Last month, the IMF revised down German growth for 2023 from 1.0% to 0.8%, the largest revision. to the downside among all other countries “. The country’s economy is currently so weak that many “fear a technical recession”.
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