Germany .. Is the era of the economic miracle?

The German economy is in a quandary and may be at the end of a golden era to enter another era, the most prominent of which is the recession that could plunge Europe's biggest economy to the bottom.

German GDP declined during the second third of this year, forcing German companies to sound the alarm after exports fell sharply.

Dread shout
Pascal Hogg, in a report published in the French magazine Le Pen, says the main reason for the slowdown is mainly due to a decline in exports, which account for nearly half of the world's third-largest exporter.

These data have raised concerns that the German economy could formally enter a recession, adds the author.

Hugg pointed out that the figures published by the German Federal Statistics Institute do not bode well, because the economic indicators entered the stage of danger.

"After decades of growth, falling unemployment to its lowest level, significant export figures and a steady rise in wages and household consumption, the German economy is starting to panic."

facts
During the second third of this year, GDP declined by 0.1% compared to the first third.

This has alarmed the Germans, especially since their country is a world leader in export.

Companies reported a sharp drop in overseas sales. According to the German Federal Institute for Statistics, "exports have fallen more than imports."

However, these figures did not come as a surprise, because experts have already warned of this sharp slowdown in economic growth in Germany, which enjoys Europe's best economy, the report confirms.

Last May, the weekly Der Spiegel talked about the subject. “The years of good old are over. Why is the German economic miracle in danger?” She wrote.

The German magazine predicted that Germany would roll into the second section of the major economic powers, according to a report by Le Pen.

It is noteworthy that the term German economic miracle is used to describe the high-speed reconstruction and development in the economy of Germany after the Second World War.

Trade war
According to the German Federal Bank, the main reason for this slowdown appears to be mainly due to lower exports, which account for almost half of Germany's GDP, and there is no indication that the export process has recovered.

Analysts believe that this trend will continue until the third third of 2019, which makes the recession real and not just speculation, perhaps confirmed by the contraction in GDP over two consecutive thirds.

The writer emphasizes that the deterioration of the German economy comes from several reasons, including the slowdown in the growth of the global economy, and speculation about the trade war between the United States and China, and the possible repercussions of Brexit.

The automotive industry is the first to be hit by the economic slowdown.

Is there any hope?
To ask what will the German government do to this current economic situation?

The report says some analysts believe the government will continue saving, while Angela Merkel sees the need to get into debt to create a plan to revive the economy.

She acknowledged that her country was in a "difficult phase" and linked the economic downturn to global trade tensions as well as the "many mistakes" in the German car industry.

On Friday, Der Spiegel reported that Germany's coalition government would be willing to give up its balanced budget base and take new debt to counter a possible recession.