German economy


Germany and France on a Slower Momentum

Recent surveys in both Germany and France indicate the perception on the part of companies that there will not be the necessary stimuli for economic activity to fuel an acceleration in the economic momentum.

German business expectations

It’s Time to Worry About German Economy

Peter Lundgreen via Caixin | On October 14, the German government lowered its GDP growth forecast for this year from 1.8 percent to 1.7 percent. Despite this, the economic minister, Sigmar Gabriel, expressed his expectation of higher economic growth next year.

Klaus Zimmermann

“Austerity is not a growth strategy, neither is demand stimulus”

MADRID | April 19, 2015 | By Ana Fuentes | Germany’s Institute for the Study of Labor Chairman Klaus Zimmermann finds the debate between EU ‘austerians’ and ‘stimulus fans’ too shallow. In his view, spending cuts for their own sake were never the German style. In a conversation with The Corner, he explains that the effects of the minimum wage introduction in his country cannot be measured yet and why he thinks the German corporate governance model helped cushion the crisis’ labor market impact.

TTIP recurso3TC

TTIP: Germany’s got the upper hand

BERLIN | By Alberto Lozano | The Transatlantic Trade and Investment Partnership (TTIP) is being negotiated between the European Commission and the United States in Brussels. Once again, Germany, as Europe’s economic and political powerhouse, could have the last word on its contents and approval. 

HE Dr Wolfgang Schäuble 6257468800

Is growing by 0.1% normal, Mr Schäuble?

MADRID | The Corner | Berlin is sticking to a rigid budgetary policy, prioritizing a 2015 balanced budget instead of growth. And hard liners aren’t just willing to make any move. As German Finance Minister Wolfgang Schäuble defended on Tuesday during a budget debate in Parliament:  “We are not in a recession. We are not in an economic crisis,” Schäuble said, “Our economy is almost working at normal capacity.” Germany narrowly avoided a recession in the third quarter, growing by 0.1 percent, thanks to a sharp rise in private consumption (0.7 percent quarter-on-quarter, the biggest rise in three years) that compensated the lack of investment.


No Picture

Germany is already being paid for borrowing

MADRID | By Bankinter analysts | Bundesbank’s monthly bulletin points that the German economy might slow down in the 2Q14, but that it would be reactivated in the 3Q14 thanks to the construction industry and the improvement of the confidence amongst households. Thus, the central bank raised its forecast for 2014 from 1.7% to 1.9%. In this context, Germany sold €1,511 million in 6-month bills with a negative interest rate: -0.0015%. Last May, the same bills were sold at +0.1089%, so we may conclude that the ECB’s negative deposit rate also helps the German debt.