Germany faces a RUDE AWAKENING: Deutsche Bank issues staggering warning on GERMAN economy

Wednesday, August 2, 2017
By Paul Martin

GERMANY’S economy is at risk of overheating and burning out as deceptive indicators mask worrying threats, the country’s biggest lender has warned.

Wed, Aug 2, 2017

Deutsche Bank said the eurozone’s largest economy has outperformed in recent years, but the trend is deceptive and to come to an abrupt halt.

There is a stark danger behind indicators that show strong employment, wage and economy growth, said the bank.

Stefan Schneider, head of the macroeconomy team at Bank Thinktank Deutsche Bank Research, said: “The German economy is already growing above its potential for the fifth year in a row.”

He warned that the boom is deceptive – and Germany will soon be facing a rude awakening

The warning chimes with economic researchers from the Kiel Institute for World Economy who issued warnings over the recent German growth.

Head of the forecasting centre, Stefan Kooths, said: “In the case of capacities that are already noticeably more used than normal, Germany is at the edge of the boom.

“Against this backdrop, the risks to the economy are also increasing.”

Mr Schneider predicted significant wage increases of more than three per cent in German industries, including the metal and electrical industry, the public sector and the construction industry.

He said: “This is a risk factor for Germany, especially regarding competitiveness.”

“Resources are increasingly tense, especially on the job market”

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