German Companies Battle Economic Storm

Germany's leading companies have been issuing profit warnings in recent months and recession is looming, but some of the country's stocks are proving resilient

Cherry Reynard 16 September, 2019 | 9:39AM

Germany

Germany has seen the worst collateral damage of the US/China trade war. Chancellor Angela Merkel told the Bundestag lower house of parliament last week: “We have international uncertainty due to the US-China trade conflict and that is of course having an impact on an export nation like Germany.”

Declining economic figures had already made that abundantly clear. The most recent industrial output figures showed a decline of 0.6% in July. While this was slower that the 1.1% decline in June, it was a far cry from the 0.3% climb that economists polled by Reuters had expected. Economic research group the Macroeconomic Policy Institute (IMK) now put a near-60% chance on the German economy falling into recession. This is up from 43% in August and the highest level since late 2012.

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About Author

Cherry Reynard

Cherry Reynard  is a financial journalist writing for Morningstar.co.uk.

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