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German trade lobby sounds warning as recession clouds circle

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The BGA trade lobby group warned that German exporters in particular are facing up against a recession in foreign trade, no thanks to the government. They said that the direction in which Berlin has leaned towards in recent years are not helping. 70% of businesses surveyed feel the government’s actions were either a deterrent or they did not go far enough to have its intended effect.

BGA said that this should be a wake up call as sentiment is darkening amid weak growth from the EU market, persistently poor figures from China, and risks from the US election outcome.

Again, this plays into the softer sentiment we’re seeing surrounding the German economy in 2H 2024. It’s a good reminder that Germany still plays an important role as the largest economy in the Eurozone. So, the prolonged manufacturing woes here should not be understated.

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