Germany’s problems impacting the world economy

Germany’s problems impacting the world economy

Germany has been among the leading economies in the European Union and has trade worth $2 trillion in the bilateral goods with the economies of United States and Europe.

The trade of Germany thus has a major impact on the two systems which are highly open and make up 2/3rd of the industrialized economies of the world

Unfortunately, rather than acting as a member which is going to construct the economy of the world, Germany has had a negative impact on the economy as Germany has been struggling to run their own economy and have been allowing the stagnation of output and demand for a major part of the year 2019 and they have been barely able to manage a growth rate of 0.6%.

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In this time, Germany has been living off their trade partners while the lecture all comers on the economic policy as they denounce the support widely provided by the easy credit conditions of the euro area and have been attacking the agenda of United States. This is because of the cut of United States on the excess of trade imbalances as a counter to the mercantilism of Germany.

Germany has systematically failed in running its economy in a proper manner and there have been devastating outcomes of that on the market. \

In the previous five years, the return on the DAX of Germany in terms of dollars has only been 3.7% a year in comparison with the impressive 13% on the Dow Jones. What’s worse is that in the interval a few of the manufacturing brands have been losing close to half of their share value in the last few years.

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