As Germany’s Economy Slows, Pressure for Stimulus Mounts
August 14, 2019
Concerns over a global economic slowdown intensified today, as Germany announced that its economy shrank in the second quarter. The nation’s manufacturing and construction led the slowdown, as global trade conflicts and Brexit uncertainty intensified a domestic slowdown.
The economic contraction marks the end of a decade-long expansion for the nation, whose strong manufacturing industry proved resilient during turbulent times for Europe. Berlin now faces pressure to ease its fiscal policy in hopes of spurring consumer demand and investment domestically as exports decline. The slowdown will also add to pressures for the European Central Bank to launch a new stimulus package at its meeting next month.