Jobs and prosperity are at stake following the protracted trade conflict ignited by the United States.
Germany’s leading economic institutes, Think Tanks,
said the trade conflict could have dire consequences for Europe’s economies.
said the trade conflict could have dire consequences for Europe’s economies.
Further or prolonged escalation of the
friction involving the United States could cause a major recession in
Germany and the whole of the European Union.
friction involving the United States could cause a major recession in
Germany and the whole of the European Union.
The think tanks which presented its
latest outlook, said US President Donald Trump’s threat to impose higher
tariffs on car imports from the European Union would, if enacted, cost a
lot of jobs and harm productivity and prosperity
particularly in Germany.
latest outlook, said US President Donald Trump’s threat to impose higher
tariffs on car imports from the European Union would, if enacted, cost a
lot of jobs and harm productivity and prosperity
particularly in Germany.
In Germany, one in three jobs depends on
exports, making the nation particularly vulnerable if hit by additional
US tariffs on car imports, given the large size of the automotive
sector.
exports, making the nation particularly vulnerable if hit by additional
US tariffs on car imports, given the large size of the automotive
sector.
Tensions rose last month after the US president rejected an offer from Brussels to eliminate auto tariffs altogether.
Several dangers building
The institutes also cited currency crises
in Turkey and Argentina and the possibility of Britain leaving the EU
without a deal as economic threats to Germany.
in Turkey and Argentina and the possibility of Britain leaving the EU
without a deal as economic threats to Germany.
The think tanks cut their 2018 GDP growth
forecast to 1.7 percent from a previous estimate of 2.2 percent, and
said they expect the economy in Europe’s powerhouse to expand by 1.9
percent next year.
forecast to 1.7 percent from a previous estimate of 2.2 percent, and
said they expect the economy in Europe’s powerhouse to expand by 1.9
percent next year.
“Demand from abroad has weakened, and at
the same time companies are having increasing difficulty finding enough
workers for their production,” Roland Döhrn of the Essen-based institute
RWI said in a statement.
the same time companies are having increasing difficulty finding enough
workers for their production,” Roland Döhrn of the Essen-based institute
RWI said in a statement.
