Europe’s Largest Economy Grinding to a Halt
BY CRIS SHERIDAN
With all the problems going on in Europe, there is a huge question mark as to whether Germany, Europe’s largest and strongest economy, will get dragged over the cliff along with the rest of the Eurozone. Recent statements by the Bundesbank are adding some weight to investors’ fears.
Consider German Growth May Grind to a Halt as Region’s Crisis Saps Exports
Growth in Germany, Europe’s largest economy, may slow to a near standstill next year as the region’s debt crisis saps demand for exports, the Bundesbank said.
The Frankfurt-based central bank cut its 2012 growth forecast to between 0.5 percent and 1 percent from a June prediction of 1.8 percent, and said a “pronounced” period of economic weakness can’t be ruled out if the crisis worsens.
“The significant weakening in foreign demand coupled with financial market nervousness” means “the German economy faces more difficult terrain in the months ahead,” the Bundesbank said in its monthly bulletin published today. There are “weighty” risks to the outlook, it said.