Germany’s Economic Outlook? ¯\_(ツ)_/¯
As analysts grapple with contradictory data, it’s clear the country’s politicians need to rebalance its export-led economy.
The Frankfurt skyline.
Photographer: Thomas Lohnes/Getty Images EuropeGermany’s economic outlook resembles Winston Churchill’s description of Russia: a riddle wrapped in a mystery inside an enigma. Analysts are banging their heads over the contradictory data emanating from Europe’s largest economy after it narrowly escaped a recession at the end of last year.
The question of how severe Germany’s slowdown really is matters for policy makers, especially for those at the European Central Bank as they debate whether to loosen monetary policy. But there is a clear warning, too, for the politicians in Berlin: The country’s economy is too dependent on the vagaries of world trade. A rebalancing in favor of domestic demand, already underway, cannot come soon enough.