The coronavirus is throwing the German economy off balance. The mix of weak economic growth, increased global uncertainty, and underutilized production capacities is slowing down companies' investment activities. The minimal year-on-year growth of one-half percent is only the result of a statistical effect.
Threats from London are harmful and will come back like a boomerang
Reacting to the decision of the British Conservative Party to appoint Boris Johnson as party leader, BDI Director General Joachim Lang says that the economy urgently needs a UK government that makes feasible decisions.
In an interview with the Passauer Neue Presse, the BDI President pleads for a strengthening and unification of Europe. Dieter Kempf expects more courage from politics in Germany. The task of the Grand Coalition is far from finished.
The Jefta free trade agreement between the EU and Japan, which will apply from February, is praised by Stefan Mair, member of the BDI executive board. Europe must stick to the course it has taken. Further trade and investment protection contracts should not fail.
Strengthen the European Union to better compete with China
The European Union and Germany both face growing challenges posed by China and its state-led economy. Although China remains an important partner, it has at the same time become a systemic competitor, said BDI President Kempf on the occasion of the presentation of a new policy paper on China.
Because of the #COVID-19 pandemic and the need to fully implement the measures decided by the French government, launch campaigns underway at the Guiana #Space Center (CSG) in French Guiana have been suspended #CoronaImpactEconomy#COVID19de
The BDI again expects weak global economic growth of a mere three percent this year. Global trade remains weak, we anticipate an increase of only 1.5 percent. Foreign trade will not be contributing to German economic growth. The increase in GDP will again this year be curbed by foreign trade. Only domestic demand generated by construction activity and private consumption will keep growth above zero.