China and Germany are stoking fears of a global recession as exports and industrial production collapse
Storm clouds are gathering over the global economy as fears about China and Europe – and especially Germany – grow.
Official figures released in Beijing yesterday showed that exports from China – often seen as the world’s workshop – were 8.8 percent lower in August than in the same month last year.
It was the fourth straight month of decline amid weak global demand for Chinese goods as consumers scaled back electronics purchases.
In Germany, another production location, industrial production fell by 0.8 percent in July.
“Dark clouds continue to hang over the industry,” said Alexander Krueger, chief economist at Hauck Aushauser Lamp.
Weak demand: Official figures released in Beijing yesterday showed exports from China were 8.8% lower in August than in the same month last year
“The weak global economy and high energy prices will keep the outlook bleak.”
Separate data published by the official statistics agency Eurostat showed no growth at all across the EU in the second quarter of the year.
In comparison, expansion was 0.5 percent in the US and 0.2 percent in the UK.
Italy’s economy shrank 0.4 percent in the quarter, while production in Germany stagnated after two quarters of decline.
Fears are growing that Germany is facing a double-dip recession and will contract again in the second half of the year after the winter downturn ended in the spring.
The IFO economic institute in Munich expects the German economy to shrink by 0.4 percent in 2023.
“Contrary to previous expectations, there will probably be no recovery in the second half of the year,” said their forecasting chief Timo Wollmershauser.