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Export malaise hits Germany

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.

Read more on Reuters.

 

 

Source: Reuters

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