On April 5, 2019, analysts provided German industrial report in which the production rate has fallen except construction as well as the energy sector. According to analysts, most of the German industries are facing hard times. The Gross Domestic Product of Germany had declined during the third quarter by 0.2%. Despite the low GDP, the unemployment rate in Germany is low, around 3.1%. Other countries which have lower unemployment rates are Japan, Chez Republic as well as Iceland.
Contrary to this, the employment rate in Germany has increased by 0.2% during the previous two consecutive quarters. Analysts are also concerned about the slow economic growth in the whole of the Euro zone. But there are few economies in the Euro zone like Spain which isn’t facing degradation in its GDP. On the contrary, Italy is suffering from worst recession period.
Expert analysts are stating trade wars in Euro Zone as the prime cause of low GDP growth in Germany. Experts are also blaming the economic slowdown in China as another cause which is causing unemployment, recession and degraded GDP in the Euro Zone. Furthermore, Germany has to also deal with the high tariffs on steel set by the Trump administration.
On the other hand, Germany is also facing hard economic time because of uncertainty lurking over the Brexit deal. The previous year, new emission procedures hindered the car production rate in Germany, as well as low Rhine river water level, also caused intense disruption in cargo transportation.
To tackle the situation, the ECB has started to charge the bank rate as low as 0. ECB has taken this step to strengthen the economy of the country. At present, most of the German analysts are speculating devastating recession which could create chaos in the country.
Few analysts are also advising the government to cut back tax amount which will help to strengthen the economy of the country. At present, the European Commission is trying to figure out genuine policies which would help the government to sustain its finances and use them for the betterment of the nation.