Germany Can Enter A Recession, Which Will Be Good For Europe: Economist – Market News Store

Germany Can Enter A Recession, Which Will Be Good For Europe: Economist

Germany can enter into a recession by the last quarter of this year, but this can prompt a significant period in the continent’s financial evolution that can ultimately help the region, as per to one investment bank. Observed as the traditional progress engine of Europe, German politicians demanded stern austerity steps in southern Europe after “The Eurozone Debt Crisis, 2011.” But as the country now experiences its own financial woes, Denmark’s Saxo Bank thinks that Berlin can kick start investment, spending, and fundamentally change Europe’s financial condition.

Steen Jakobsen—Chief Investment Officer and Chief Economist at Saxo Bank—told to CNBC, “It has got them back in the game.” He emphasized that a surge in populist parties at EU (European Union) elections in May, the awaiting exit of Angela Merkel as chancellor, and switch of presidents at the ECB (European Central Bank) will all bring out this dramatic shift. In its latest quarterly outlook, the Danish investment bank said, “We decisively believe that any inclusive alteration has to come from a crisis or a breakdown, and as such we see 2019, 2020 as important years for Europe’s evolution. Germany progressed and so did the EU altogether. Now the latest reality has to see if Berlin expand is of any benefit to the rest of Europe. In general, a new common ground would be discovered from a more fragmented Europe.”

Speaking of the global recession, recently, an economist stated that the recession is “highly possible” if there is no any US-China trade deal in next few months. The global financial system is highly likely to collapse into a recession if the U.S. and China do not attain a trade deal in 3 Months, as per to Mark Zandi, Moody’s Analytics Chief Economist.

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