German Of The Day: Rezessionsängste

That means recession fears.

German economy unexpectedly shrinks in Q4, reviving spectre of recession – The German economy unexpectedly shrank in the fourth quarter, data showed on Monday, a sign that Europe’s largest economy may be entering a much-predicted recession, though likely a shallower one than originally feared.

Gross domestic product decreased 0.2% quarter on quarter in adjusted terms, the federal statistics office said. A Reuters poll of analysts had forecast the economy would stagnate.

German Of The Day: Abschmieren

That means to slide or to crash.

Deutschland schmiert wirtschaftlich ab – Germany is sliding down the economic slope.

Economically, Germany can no longer keep up with the USA, Scandinavia and Western Europe.

According to a study by the “Stiftung Familienunternehmen” (Family Business Foundation), Germany is slipping dramatically in terms of competitiveness: among 21 industrialized nations, Germany now ranks only 18th!

Soaring Interest Rates, Weakening Economy, Record Inflation…

What’s not to like?

Oh, yeah. Commercial real estate is taking a dive now too.

German Real Estate Deals Plunged 50% in Fourth Quarter, BNP Says

Germany’s real estate market took a deep hit in the fourth quarter as investors shied away from deals on the back of soaring financing costs.

Total investments in the country’s commercial property sector only reached €9.9 billion ($10.6 billion) in the last three months of 2022, a decline of 50% compared with the five-year average for the period, according to a report released by BNP Paribas’ real estate unit on Monday. The development is largely due to soaring interest rates, a weakening economy and record inflation, it said.

Things Are Not Looking Good

Because things are looking better.

Because once things start looking better, they can only get worse.

German businesses expect only mild recession as disruptions ease – German companies expect only a mild recession next year despite headwinds from the energy crisis, raw material shortages and a tepid global economy, a survey of major associations published by Reuters on Tuesday showed.

There have been growing signs that the German economy could stave off the worst of an economic downturn triggered by a plunge in energy supply from Russia after the Ukraine invasion.

Inflation to 11.3% in November from a high of 11.6% the month prior as energy prices eased. The German government has predicted the economy will grow by 1.4% this year and next year.

Is Germany Finally Waking Up?

Probably not. But still. It’s starting to roll around a little in its sleep.

German economy ministry favours blocking Chinese takeover of Elmos’ chip production – Germany’s economy ministry has recommended to the cabinet that the government block the Chinese takeover of Elmos’ (ELGG.DE) chip factory, saying it would pose a threat to national security, ministry sources said on Tuesday.

German Of The Day: “Keine Deutsche Sonderwege”

That means no (more) Germany going it alone.

That’s a very popular political mantra here. You normally hear it right before Germany goes it alone again.

France and Germany’s relationship questioned as Scholz goes alone on policy – Germany has been criticized for approving a 200 billion euro ($200.2 billion) rescue package.

Fresh tensions between France and Germany are challenging their relationship at a time when their unity is critical for broader European policy in tackling the energy crisis.

The leaders of the two nations will meet in Paris on Wednesday, but this encounter almost got canceled.

German Of The Day: Arbeitsplatzabbau

That means job cuts.

Energy crisis: Quarter of German companies ‘plan to cut jobs’ – In order to tackle rising energy prices, a quarter of German companies revealed in a new survey that they planned to cut jobs, among other cost saving measures.

Around 25 percent of German companies plan to axe jobs as a cost saving measure, according to a survey of 1,080 German firms led by the Munich-based Stiftung Familienunternehmen released on Monday.

German Of The Day: Steuereinnahmen

That means tax revenues.

How’s it go again? The bigger they are, the harder their tax revenues fall? Jeepers. I wonder why tax revenues would be falling in Germany these days. It’s not like businesses are only just beginning to go bankrupt thanks to Germany’s dependency on Russian gas, Green utopian make-believe, skyrocketing energy costs and the resulting crazy inflation. It must be something else.

German tax revenues fall in August for first time this year – Federal and state government tax revenues fell in Europe’s biggest economy during August for the first time this year, the finance ministry said on Thursday.

German Of The Day: Schwaches Glied

That means weak link. I could also mean limp member, but let’s not go there.

Weak. You know. Like the German economy?

From Europe’s powerhouse to its weak link: Germany’s economy stutters – Economic model that depends on exports has been hit by a series of external shocks.

Germany is experiencing a squall of shocks that are darkening its economic outlook. Along with soaring inflation, persistent supply chain problems and weaker global demand are weighing heavily on its industrial sector.

“What’s most worrying is just how broad-based the weakness in the economy is,” said Clemens Fuest, head of the Ifo Institute, a think-tank. In previous downturns, services suffered but industry recovered, and vice versa. “But now we’re seeing weakness across the board.”