Global economy weakens German economy: financial experts pessimistic for 2023

Global economy weakens German economy: financial experts pessimistic for 2023

According to a report by www.sueddeutsche.de, the German economy appears to continue to weaken despite an unexpected increase in goods exports in November 2023 and slightly more orders in industry. Exports fell by 5 percent compared to the same month last year, and the further outlook remains cloudy.

The weak global economic situation and unfavorable conditions for investments are putting a strain on the export-oriented German economy. The additional bureaucracy and security situation in the Middle East could have a negative impact on foreign trade.

In November, goods worth 131.2 billion euros were delivered abroad, which still represents a decrease compared to the same period last year. Weak foreign demand, particularly from the euro area, continues to weigh on the industrial economy.

Experts and economists are not very optimistic about the economic prospects. According to ING chief economist Carsten Brzeski, the slowdown in global demand and the war in Gaza are exacerbating the structural problems. The forecast of a 0.3 percent decline in gross domestic product (GDP) by the Institute for Macroeconomics and Economic Research (IMK) underlines the negative mood.

This could have a negative impact on the market and the financial industry. The continued weakness of the German economy could lead to a decline in investment and demand, which in turn could lead to a general economic slowdown. This situation could lead to increased uncertainty and more cautious investment decisions.