Economic growth in Germany will remain weak in the first quarter of 2020 because of the low volume of exports and the outbreak of the coronavirus in China, said in a regular economic price index, Reuters reports.
Europe’s Largest economy in the fourth quarter of 2019 stagnated, so its growth was only 0.6% for all of last year, it was affected by the recession in the manufacturing sector of the country. In turn, this negatively affected the economy of the entire Eurozone.
“In the first quarter of 2020, there will be no signs of fundamental changes in the German economy”, — stated in the message of the Bundesbank.
“With the onset of coronavirus in China in the early 2020 has added new levels of risk”, — experts noted.
in addition, it is reported that the coronavirus can disrupt global supply chains and lead to delivery problems for German companies.
the German Economy will remain driven by domestic consumption due to higher wages, sustainable employment and a strong construction sector.
As reported earlier, the largest German Bank Deutsche Bank warned about the proximity of the recession in the country since the outbreak of the coronavirus in the world are seriously aggravated by long industrial decline in Germany.
Deutsche Bank predicted a small decline in the economy in the fourth quarter of 2019 and questioned the prospect of recovery in the early 2020.