US-China Trade Conflict Hitting Germany – Merkel
Last month, a major British-German business association warned that Berlin could enter a full-blown recession later this year amid the ongoing US-China trade conflict and the looming threat of a no-deal Brexit.
German Chancellor Angela Merkel said Wednesday that the current trade war between the two superpowers, China and the US, is hitting Germany.
“We have international uncertainty due to the US-China trade conflict and that is, of course, having an impact on an export nation like Germany”, Merkel told the Bundestag, the lower house of parliament.
The German chancellor has also touched upon the uncertainty around Brexit that is hittinh the German economy. According to Merkel, there is still a chance for Britain’s divorce from the European Union to take place with a deal although Berlin is ready for a no-deal withdrawal.
“We still have every chance of getting an orderly (Brexit) and the German government will do everything it can to make that possible – right up to the last day. But I also say we are prepared for a disorderly Brexit”, Merkel told parliament.
“But the fact remains that after the withdrawal of Britain, we have an economic competitor at our door, even if we want to keep close economic, foreign and security cooperation and friendly relations”, Merkel added.
The speech comes a month after Federal Statistics Office data showed that growth in Germany’s gross domestic product had fallen by 0.1 percent quarter-on-quarter to 0.4 percent, down from 0.9 percent in the first quarter of 2019 as a result of the trade war and the looming threat of a no-deal Brexit.
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