InfoSearched
Published -
- July 26, 2019
- 8:17 am
Germany Avoided A Recession Last Year
Shweta Singh, global macro managing director at TS Lombard, discusses Germany’s economy and manufacturing sector.
What measures did the German government take to prevent a recession in 2019?
According to a report published by the global investment research firm TS Lombard, Germany has just managed to avoid a recession in 2019. The report suggests that while the country faced some significant economic challenges, it was ultimately able to avoid a full-blown recession due to a combination of factors, including government stimulus measures and growth in the services sector.
The report’s author, Shweta Singh, notes that Germany’s economy has been facing headwinds for some time, particularly due to a slowdown in global trade and manufacturing. However, despite these challenges, the country’s GDP grew by 0.6% in 2019, barely avoiding a recession defined as two consecutive quarters of negative growth.
In discussing the reasons behind Germany’s economic performance, Singh points to several key factors. Firstly, the German government implemented stimulus measures that helped to boost the economy, including tax incentives for businesses and increased support for public infrastructure projects. Additionally, Singh notes that growth in the services sector, which accounts for a large portion of the German economy, helped to offset the negative impact of declining exports and manufacturing output.
Singh also acknowledges that the German economy continues to face challenges, particularly in terms of declining manufacturing output and ongoing trade tensions with the United States and China. However, she expresses cautious optimism about Germany’s future prospects, citing its strong fundamentals and its ability to weather economic storms in the past.
The TS Lombard report is significant in that it provides a more nuanced picture of Germany’s economic performance than the widely-reported GDP figures. While Germany did ultimately avoid a recession in 2019, the country still faces significant challenges moving forward, particularly as global trade tensions continue to simmer. However, as the report suggests, Germany’s government and businesses have demonstrated an ability to respond to economic challenges, which should give some cause for optimism going forward.
