Germany To Enter RECESSION Following 'Sudden Collapse' in Industrial Production

NN ^ | 2019-01-10 21:00 | Pippa Monroe

[Steve1999]

Germany is on the verge of entering a recession after suffering a collapse in industrial production, according to reports. Traders were shocked when they saw the German economy plummet sharply than anticipated. Industrial production plunged by -1.9 percent in November - a year-on-year low of -4.6 percent stoking the uncertainty in the world's fourth-largest economy.

[crz]

Minus 4.6?

Wow. And they got a unhappy nation because of the commie Frau and her immigration policy. This should get to be real good.

[txrefugee]

Mattie Merkel assured everyone that importing over a million indigent immigrants would be the key to German growth and prosperity. So the obvious answer to this economic collapse is to import more third world immigrants.

[himno hero]

MAGA will get the hub of the of the wester free world humming again along with its current trading partners.

let the euroweenies rot in their NWO turd world muzlim eccentricities.

[central_va]

Better increase the monthly panzer production quotas.

[BobL]

Things will get VERY INTERESTING in Europe if this holds.

There is tacit understanding between the (Western) European people and their governments. It goes like this:

“Who cares about the Muslim invasion and repopulation - but what the hell, all our economies are doing great!!!”

If the second part of that ‘understanding’ no longer holds, all hell will break loose! This is going to fun to watch.

[Texas resident]

Import millions of welfare bums and shazam, their economy tanks. Who knew?

[ProtectOurFreedom]

Plunged a negative 1.9%?

It was long ago that I studied math, but isn't that a skyrocket JUMP of 1.9%?

[bunster]

Yes, things should get very interesting - especially after the announcement today of agreement of border sharing between Macron and Merkel. Surely these two knew of these production numbers before agreeing.

[MeganC]

The EU didn’t want to deal fairly with the US on trade and now they’re paying for it.

Serves them right!

MAGA!!!

[VanDeKoik]

Mass-immigration is supposed to have led to economic success.....right?

See how great things are going to be in a recession.

[Buckeye McFrog]

The whole EU sham largely hinges on the ability of Germany to subsidize it’s shiftless and reluctant members.

If this holds Brexit may become a moot point.

[Tolerance Sucks Rocks]

All those Moslems that were being imported to work in German factories collected welfare and ran rampant instead, while more and more of the natives retired.

[himno hero]

Project that into the future......and the Hijrah was a success!!!

[Georgia Girl 2]

Not to mention all those muzzie immigrants they have to support. 😆

[dfwgator]

Guess we know why Merkel decided to leave.

[nathanbedford]

I am reluctant to reflexively identify the cause of this downturn to be immigration because the German economy is in almost unique in the world in that it exports nearly 50% of its GNP. I suspect that much of the downturn has to do with a downturn in exports.

That is not to say that the influx of indigestible immigrants has not caused many problems, but the sale of Volkswagens or chemicals probably is not among them.

[kabar]

The whole EU sham largely hinges on the ability of Germany to subsidize it’s shiftless and reluctant members.

Germany is sucking the EU members dry thru its mercantile policies. Imagine, for example, what would happen to the EU economy, to the rest of the world — and to U.S. export sales in general — if Germany were not living off its fellow Europeans with a massive 164.4 billion euro trade surplus.

That German surplus is stifling the economic growth in the rest of Europe, because it is a deficit for countries trading with Germany. You can think of those 164.4 billion euros as a large wealth transfer to Germany. Indeed, it is a structural foundation of Germany's export-driven economy, where sales to the rest of the world account for nearly a half of German GDP (compared with 14 percent in the U.S. case).

What Europe, the U.S. and the rest of the world need here is a radical change of German economic policies. Germany should be generating more growth from domestic demand to give an opportunity to its trade partners to sell more of their goods and services on German markets. That would boost intra-European growth and create opportunities for more American sales to Europe — its largest overseas customer.

[brookwood]

It’s inevitable the Germany will become less competitive in industry because so much of its energy comes from wind turbines and solar panels, which increases the cost of production.

[kabar]

The decline in German exports has more to do with a slowdown in the global economy than it has to do with competitiveness.

On the one hand, Germany’s strength is that its economy relies on producing goods and selling them to other countries—unlike Britain and America, whose economies rely on their own citizens borrowing money and spending it on services.

On the other hand, this makes Germany uniquely vulnerable to global economic shocks. In 2009, its economy shrank by nearly 6 percent. The crisis hit Europe hard, and at that time over 60 percent of German exports went to Europe.

Many of Germany’s main trading partners are still recovering from the crisis. Germany, in order to pick up the slack, turned to America. In 2016, America accounted for 9 percent of German exports.

This means that nearly 4 percent of Germany’s economy comes from selling to the U.S.

The indirect impact stretches even further. America’s other top trading partners are France (8.3 percent of exports), the United Kingdom (7.1 percent) and China (6.2 percent). These nations’ economies are also closely tied to America’s. When America’s economy slows, these nations’ economies slow too—which means they also import less from Germany.

Making matters worse, Germany’s exports tend to be the kind of products that people first stop buying when times are bad. In 2016, 20 percent of Germany’s export revenue to the U.S. came from the automotive industry. When recession hits, sales of new cars fall fast.

This makes Germany’s exports vulnerable to big decreases. In 2009 America’s economy shrank by 2.8 percent, but its imports from Germany shrank much more. German exports to the U.S. in 2009 were 27 percent lower than in 2008.

If this happened today, the direct effects alone would cause Germany’s economy to shrink by 1 percent. Once the knock-on effect is factored in—with Germany’s other top customers all cutting back at the same time—Germany’s economy could be pushed into a serious depression very quickly.

For Germany at this time, a 5 percent fall in exports means a nearly 2.5 percent drop in the size of the economy. From 2008 to 2009, Germany’s exports fell by nearly 20 percent.

“Understanding the degree of dependency of Germany and its export growth on the U.S. becomes key to analyzing the dynamics of the German economy,” wrote Geopolitical Futures (June 29, 2017). For most of the world, the old adage holds true: When America sneezes, the world catches a cold. But Germany’s massive dependence on exports means it is at risk of pneumonia.