Germany, the locomotive of Europe is jammed. Down the confidence of businesses: drop more than expected
The Ifo index down for the fourth consecutive time: 106.3 points against 107 expected. Weighs the sharp slowdown in GDP quarterly: a contraction of 0.2%, the first negative figure since 2012
Chancellor Angela Merkel is now an official visit to Spain
08/25/2014
The German economy still in trouble: after braking GDP scored from -0.2% in the second quarter, down for the fourth consecutive month the index of business confidence, its lowest level since 2013 The Ifo index, which records exactly the sentiment of German companies , stood at 106.3 points, less than expected. In fall, the index that measures the current situation, which goes from 112.9 points in July to 111.1 in the current month. To weigh, according to economists Institute of Monaco, it is mainly the Ukrainian crisis and the standoff of the Russia-EU sanctions which is dangerously affecting trends in exports of enterprises in Berlin, particularly exposed to Moscow.
And if this is not rosy turning point is not around the corner, according to Klaus Wohlrabe, Ifo economist, in the third quarter of the year, German GDP growth will be close to zero. The entire 2014, according to Wohlrabe, German growth should reach 1.5%, compared with an increase of 2% expected. Consumption, however, hold up, reports the Ifo and the German economy is still “far from recession.” The Ifo economist confirms that the German braking is mainly due to the crisis in Ukraine is difficult to quantify, especially on penalties in Moscow, which have limited the turnover of enterprises: German companies that have close ties with the Russia are very pessimistic. In particular, as is clear from the analysis of the Ifo both the Henkel group that the defense giant Rheinmetall have cut their profit forecasts for the next few months just because of the Ukrainian crisis and sanctions against Russia. A particular worry is therefore the slowdown in exports to Moscow: the percentage in the first six months of the year fell by 15.5% to EUR 15.3 million mainly on the front of the machines. And the German manufacturing fears a further braking.
The Ukrainian crisis is having an impact on the progress of the German economy, but Germany is expecting a “good” GDP growth for this year, from Spain reassures the German Chancellor, Angela Merkel, who collects a sort of victory at the distance against the French Minister of Economy, Arnaud Monteburg that in a long interview with Monde, had questioned the German rigor and excessive austerity advocated by Berlin.
Today, the French Prime Minister, Manuel Valls delivered to the President of the Republic on its mandate and are expected by tomorrow a government reshuffle. Without Montebourg. Nothing has changed in relations between France and Germany, favorable policies for growth and jobs remains a priority, ensure the spokesman of Merkel, who has not commented on the news of the resignation instead of Valls, stressing that this is an internal matter for the French .
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AFP
25/08/2014
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08/24/2014
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08/24/2014
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08/24/2014
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