In times of turmoil, Germany’s economic excellence can prove to be a curse. With its dependence on exports, the country is uniquely sensitive to geopolitical crises.
According to a recent report by the Federal Office of Statistics, foreign trade played a significant role in the slight decline in economic output in the second quarter. In light of crises around the globe, on Thursday the Association of German Chambers of Commerce and Industry, known as the DIHK, lowered its prognosis for exports in the current year once again. Instead of a 4.5-percent increase, as expected at the beginning of the year, the group now predicts a 3.5 percent growth in exports “at best.”
That means “German exporters will be making about €11 billion ($14.7 billion) less than assumed,” said DIHK trade expert Volker Treier. “That puts about 100,000 jobs in Germany at risk.”