WASHINGTON — It looks like the German economy is slowing down, which is not good for the rest of the European Union’s eurozone. Germany has been sustaining the eurozone economy and has been dictating financial policy because of their financial stability.
German exports fell significantly for the first time since 2009 and the country’s industrial output also fell. Imports and demand for imports did rise and could indicate a robust economy, but the verdict is still out.
Germany saw a drop in demand for its products in Europe and in China, but European economist Jennifer McKeown believes that this deals “a blow to hopes that a strong recovery” is in order for the eurozone.
This does not comfort countries like Greece, Spain, Portugal or Italy, which are struggling to stay afloat as their state debt exceeds their gross domestic product (GDP). France is also in a recession, and there is a lot of pressure on the government to right the ship.
Germany’s Chancellor Angela Merkel is looking for ways to decrease the high youth unemployment rate in the eurozone, but it may not be enough in the months to come.