This is how the German prick will affect the Spanish economy

The slowdown in the German economy questions its ability to pull the rest of the European economy into a phase of global uncertainty and, of course, affects


The slowdown of the German economy questions its ability to pull the rest of the European economy into a phase of global uncertainty and, of course, directly affects Spain.

Yes. Spain exports mainly to Europe, almost 65% of its sales are made in the EU. Germany is a purely exporting nation. Its highly diversified exports are global, hence its greater exposure to situations such as those that the trade war between the United States and China has now generated.The signs are contradictory. The country experienced a similar situation last year, but it dodged the technical recession thanks to domestic consumption. In this case, pessimism prevails. Experts see no positive signs in the short term and domestic demand will not be able to compensate for the sharp decline in industrial production and exports. Germany, however, has room for maneuver to revive its economy. Why does Europe depend so much on its economy? Germany accounts for almost a third of the euro zone economy. If it enters into recession or its economy stagnates, the impact would be generalized by the high commercial integration and the important weight of value chains in Europe, of which Germany is a fundamental axis. What effects can the European locomotive have to stop for the Spanish economy? Many and on several fronts. Spanish exports to Germany account for 10.7% of foreign sales. Spain produces components for German vehicle manufacturers, who are struggling to adapt the new environmental regulations and sell less, especially to the United States and China. The fall of the automobile sector has been in Germany of 12%. Another key sector is tourism. Germany is the third country that brings more tourists to Spain. However, coinciding with the weakening of the German economy, German visitor arrivals have declined in cumulative terms since April last year. The falls also correspond to the recovery of a cheaper destination such as Turkey, which reduces flows to Spain. Does Germany export to very different places in Spain? Spain exports mainly to Europe, almost 65% of its sales are made in the EU. Germany is a purely exporting nation. Its highly diversified exports are global, hence its greater exposure to situations such as those that the trade war between the United States and China has now generated.

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  • Germany
  • Spain
  • Europe
  • China
  • U.S
  • Turkey
  • economy
  • Crisis

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ref: elmuldo