The German economy began in 2020 with stability in economic growth and a state of weakness that dominated the manufacturing sector to continue the uncertainty about the continued suffering of the largest economy in the euro area in the coming period.
It is reported that the German economy was one of the largest economies affected by the decline in commercial activity, the trade war between China and the United States of America, the Trump administration's desire to apply tariffs also to the auto industry in Europe, which prompted the German economy to record growth of only 0.6% throughout 2019 and its growth stability in the last quarter of last year. The labor market in Germany was the only sector to record steady growth in 2019, with employment growing by 0.3% at the end of the year to be the largest sector that contributed to the German economy going away from the recession. At a time when the German economy witnessed a sharp slowdown in consumer and government consumer spending, in addition to a decrease in investment in equipment.
But we must consider the situation. The euro was severely affected by the slowdown in the growth of the German economy, which will undoubtedly weigh heavily on the euro zone economy as a whole, which prompted the euro to fall against most major currencies, especially against the US dollar, to break the 1.09 level and head towards 1.0825 Which is the lowest level since April 2017, nearly three years. Among the most prominent challenges facing the German economy is the outbreak of the Corona virus, which caused the closure of many German factories in China, most notably Volkswagen and Jin, and the drop in Delmar sales since the beginning of this year.
Asian markets rank as the second largest trading partner with Germany after the United States of America, close to 100 billion euros ($ 108 billion annually). The manufacturer Osram Licht AG has about 20% revenue in China and expects it to reach a minimum because - as with many companies - it had to temporarily close.