Momentum in German exports slowed in the first half of 2019 and abruptly reversed in June, data showed on Friday, Aug. 9, adding to signs of broad-based weakness in an economy increasingly relying on domestic demand to eke out even meager growth.
A global growth slowdown accompanied by tariff disputes and uncertainty over Brexit has impacted growth across western Europe, but Germany’s traditionally export-reliant economy – the continent’s largest – has been particularly vulnerable.
Those headwinds have been offset by stimulus at home, where record-high employment, inflation-busting wage hikes and low borrowing costs have driven a consumer and construction boom.
However, that may not prevent German GDP – for which preliminary data is due on Wednesday – from joining the continent’s second largest economy Britain in having contracted in the three months to June.
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