Global uncertainty due to the U.S.-China trade war and climate change is hitting Germany.
Germany’s “golden decade” has come to an end, with its economy shrinking in the second quarter. Its GDP is down 0.4% growth since the first quarter.
Germany is the world’s fourth largest economy and Europe’s biggest. It helped to support ailing growth in Europe during the global financial crisis.
Throw Brexit in, and the dragging on of the trade war, and the outlook is exceedingly grim. Germany is “teetering on the edge of recession,” per Andrew Kenningham, chief Europe economist at Capital Economics.
“The main question really is how exports and industry are going to fare,” said Oliver Rakau, chief German economist at Oxford Economics.