Germany still looks like the ‘sick man of Europe’ as slowing exports fuel recession fears

A sharp slump in exports could plunge Germany back into recession – underscoring its status as the “sick man of Europe”.

In a somber report yesterday, the Federal Statistical Office said exports fell 0.9 percent in July as global demand continued to weaken.

The figures underline the crisis in the German economy, which has been borne by the sale of its goods all over the world for decades.

Burglary: Shipping containers awaiting transit in the Port of Hamburg, Germany. According to the Federal Statistical Office, exports fell by 0.9% in July as global demand continued to weaken

“Trade is no longer the strong, robust growth engine of the German economy that it once was, but rather a liability,” said Carsten Brzeski, global head of macroeconomics at ING.

“Frequencies in the supply chain, a more fragmented global economy and China’s increasing ability to produce goods it previously bought in Germany are factors weighing on Germany’s export sector.”

German production fell for the last three months of last year and the first three months of this year – meaning it was in recession.

The economy stagnated in the second quarter but fears are mounting that it will contract again in the current third quarter – leaving the country on the brink of another recession.

The International Monetary Fund expects it to be the only member of the Group of Seven developed nations to shrink in 2023.