ECB's Nagel: US tariffs could push Germany into recession this year
The debt brake reform is a tailwind that might potentially drag Germany out of the slump, with plans to go big on infrastructure spending. It will need time to play out though and if Germany suffers another year of economic contraction, it will mark the first time since the reunification in 1990 that Germany suffers three straight years of declining GDP. Trump's tariffs are the key risk factor that could see that materialise. This article was written by Justin Low at www.forexlive.com.
The debt brake reform is a tailwind that might potentially drag Germany out of the slump, with plans to go big on infrastructure spending. It will need time to play out though and if Germany suffers another year of economic contraction, it will mark the first time since the reunification in 1990 that Germany suffers three straight years of declining GDP. Trump's tariffs are the key risk factor that could see that materialise.
