Something has to give. While China's economy has stabilized, Europe might be facing a second wave of the virus, which would affect the appetite for cars, Mr. Breidenbach told analysts on a call this week. Already we know that the German economy contracted in 0.1% in the second quarter. Consumer spending was down and so was investment (apart from construction which, along with government spending, softened the economic blow). July 24, 2020. As BMWs, aspirin and industrial robots flow from Germany … Browne said that the German economy was facing a "massive problem" over the next five to ten years, with the auto industry expecting lower car sales and thousands of job cuts as it shifts to electric technology.Browne said changes meant "a third of its auto industry workers are going to get the sack, a lot of people working in garages are going to get the sack. July 30, 2020 10:23 ET (14:23 GMT) "Due to the positive trend exhibited in our business over the past few weeks and the introduction of numerous attractive models, we look cautiously optimistic to the second half of the year," said Frank Witter, a Volkswagen board member, in a statement.
Germany has experienced a sharp economic slump, thanks to the coronavirus. ""Mrs Merkel who has been this amazing politician for the last decade, and one of the very few that's been in power for the whole period of time, she's on her way out – and therefore the policies they (the government) are proposing at this point are on the way out as well," he told CNBC Europe's Squawk Box. FRANKFURT -- Germany suffered a record economic contraction in the second quarter as measures to slow the pandemic's spread closed businesses and kept consumers at home, but Europe's powerhouse is nonetheless expected to shrink by less and recover faster than other major economies. June 30, 2020. The US economy contracted 5% in the first quarter.Economists at Danske Bank caution that the record drop in German GDP is “old news” and that the economy is now recovering. Germany Economic News. The Dax in Frankfurt has tumbled 1.5% to 12,633. Recent figures raise fears that the power house of the European economy could be tipping into recession.
© Copyright 2020 Morningstar, Inc. All rights reserved. It has been a poor week for German economic news. Opinion Opinion: Germany's economy can't count on bouncing back fast. Daimler AG Chairman Ola Källenius said last week that the auto manufacturer was seeing the first signs of a recovery in sales after a sharp drop in the second quarter, especially at its Mercedes-Benz passenger car unit. The economy is expected to have contracted sharply in the second quarter due to Covid-19. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. And that, coupled with the fact that you've got this massive political fatigue in Germany, is going to produce some really big radical change," he noted.Economists are more hesitant over any nascent recovery, however. Global News Select Germany's Economy Suffers Biggest Contraction on Record, but Green Shoots Emerge — Update Provided by Dow Jones. A year, in which strong private and public consumption has offset the impact from the manufacturing slump. In-depth business news on Europe and it's strongest economy. Another way of looking at it is the employment rate - … But the resurgence in infections across the U.S. in particular is creating headaches for German business executives. In April, industrial output fell at the steepest clip since at least the early 1990s, particularly on the back of weakness in the manufacturing sector amid the global lockdown weighing on foreign demand. ... Germany’s €130bn stimulus will boost recovery, says Bundesbank. Its latest survey of around 2,000 consumers found that confidence is fast returning to pre-pandemic levels. "The German economy has been tiptoeing on the edge of recession since the beginning of 2019, but it can hide no longer," said Claus Vistesen, chief eurozone economist at Pantheon Macroeconomics.