Is Germany Headed Toward a Recession? by Connor Botz

International and domestic business confidence in the German economy has plummeted over past week due to new projections predicting a steep recession in Germany's near future. In March, Germany's recession probability was at just 6.9%, but it is now projected to be 32.4% between April and June 2018. The momentum of business growth in Germany has slowed significantly for the past five months, signaling the fact that Germany's economy is slowing, and has been greatly affected by nationalist and protectionist policies in Europe and the US.

Germany and France seek to overturn US sanctions

As Europe's top economic power, a recession in Germany would cause a significant ripple effect throughout the continent and around the globe, especially considering how active they are in international business practices. Some blame Trump's new implementation of import duties for steel and aluminum as a contributor to the economic downturn. Overall, a recession for Germany would have negative implications for Europe, the US, and many of their other trade partners. Do you think Germany really is headed toward a recession, and how do you think it would effect US business? (Source)

Comments

  1. Blythe DericksonMay 2, 2018 at 8:30 AM

    All the information considered, I definitely think that it is very possible that Germany is headed toward a recession and this would mean not so great outcomes. This would effect US businesses in such a negative way, because we trade with many different counties. And if Germany is Europe's top economic power, then this could possibly bring Europe down as well.

    ReplyDelete
  2. Derric GrayMay 9, 2018 at 12:52 PM

    I was surprised to see that Germany has been having a bit of trouble. What really surprised me was that fact that it might jump to 32.4%. That is a crazy increase and I hope that they can find a way out of it.

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