Hot seam: Industrial companies find significant investment incentives abroad.
Image: dpa
Germany and the interest rate turnaround by the ECB are weighing on the momentum in the euro area. Economists fear that industrial companies will migrate. An upswing is far away.
Dhe economy in Europe is mostly growing slightly, but not in Germany. The region’s largest economy is experiencing a technical recession with no improvement in sight. Economic output in Germany has fallen for two quarters in a row, as statisticians recently measured. This is unlikely to change any time soon: it is to be expected that economic growth here will remain weaker than in other European countries.
The economist Oliver Holtemöller expects that the German economy will continue to struggle and that the third quarter will also be worse than previously assumed. “We are in a downturn – and that will only slowly disappear,” says the deputy president of the Leibniz Institute for Economic Research Halle (IWH) in an interview. Sentiment indicators have deteriorated, which is why the second half of the year is likely to be weaker. “Things went much better in the euro area, but sentiment indicators have deteriorated here too.” However, he does not expect a recession in the euro area.
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