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‘Sick Man’ Germany Blights Decent Eurozone Growth
The sick man's still sick.
Europe's largest economy contracted on both a QoQ and YoY basis in Q2, according to a preliminary estimate released on Tuesday.
The lackluster showing from Germany was a blight on an otherwise decent eurozone growth update. Germany's statistics office provides few details in the initial release (the full breakdown won't be available until the second estimate) but indicated that business spending and construction were weak.
France, by contrast, posted a 0.3% expans
It’s going to take Germany awhile to right their ship. My view is ostopolitics. They export significantly to China (weak), and used to import energy from Russia. Ukraine/Nato took care of that. Germany has more manufacturing output than most and they are likely having to transition to services. Immigration is no longer on their policy agenda. Right now, they do not have much of a growth catalyst.
Add confused, irresolute leadership in Germany.