Europe could be about to hit a crisis, as three of its largest economies are tanking at the same time. What’s more, the European Central Bank looks like it’s out of bullets to fire the economy up.
Germany is Europe’s biggest economy. Germany is very much reliant on foreign exports, which means that it’s a victim of slowing global trade from the China-US trade war.
On Wednesday, Germany reported that industrial production declined 1.5% month on month in June. According to Oxford Economics, “All the main sectors, excluding construction, fell over the month as trade tensions continued to impact the sector.”
In Q2 industrial production fell 1.9% quarter on quarter, which the economists said is “the largest quarterly decline since 2012.”
“Our German GDP indicator now points to a contraction in Q2,” as factory orders decline, it said.
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