Industrial orders in Germany have been badly hit in August.
The German economy has been facing a huge slowdown. Weak domestic data shows that domestic demand has weakened and manufacturing orders have declined in recent times.
The economy of Germany is slipping into a recession, say, analysts. Germany, which is one of the global leaders in industrial exports, has been worst hit in its manufacturing sector. “Made in Germany” contracts have fallen 0.6 percent from last month. Capital goods have gone down by 1.6 percent, according to the Economy Ministry.
Olaf Scholz, the Finance Minister says that Germany has the ability to cope with any economic crisis. He says that the economy is not as bad as what it was a decade ago, during the financial crisis of 2008. The industrial sector remains a bit subdued, states Scholz.
The economy has seen a decrease in the second quarter by 0.1 percent when compared with the previous quarter. The third quarter continues to be weak.
The trade war between China and the U.S. has brought a global downturn, as every economy has seen a decline. Industrial exports are hit and this has brought a slump in the German economy. Industrial exports which form one-fifth of the revenue of Germany have dropped.
The delay in the exit of Britain from the European Union is another cause for the slowdown in Germany’s manufacturing sector.
The growth forecast in the German economy has been slashed by leading institutions. Trade disputes and Brexit delays are the main cause of the slowness in growth, feel analysts.
Chancellor Angela Merkel is not interested in acquiring new debt, as the growth forecast is slowing. The growth cycle has been long and the Chancellor does not want further debt in the economy.
The government continues its policy of having a balanced-budget in the country, though economists have asked the government to increase its spending.