WASHINGTON — Germany, which the European Union (EU) is heavily reliant on, may not be able to keep up with all the bailouts and payments that they have been subjected to during this prolonged recession in Europe. As we at AIM reported earlier, one country’s economy cannot hold up an entire continent for long.
Reuters reports German investor and analyst sentiment is only getting worse as time goes on, as the EU economies are starting to struggle even more.
An economic think tank in Germany, ZEW, saw its monthly poll of monthly sentiment fall from 38.5 to 36.3 in June. Sebastian Sachs of the Metzler Bank said “The ZEW index turned out surprisingly bad. That is not a good sign for the euro zone and shows that not everything in Germany is as rosy as people think,” said Sebastian Sachs at Metzler Bank.
China’s economic slowdown is also worrying Germany analysts, investors and consumers because Germany thrives on driving up exports to other countries. With a depressed demand for German products, or any foreign products, in China it could cause a slowdown in Germany and the U.S.