POST TIME: 19 November, 2019 09:28:20 PM
German industry sees deep slump in 2019
AFP, Frankfurt

German industry sees deep slump in 2019

Germany's powerful BDI industry federation said yesterday that manufacturing firms are in a deep recession, forecasting that output will fall by four per cent year-on-year in 2019.

"After six years of growth, German industry has been in a recession since the third quarter of 2018," BDI director Joachim Lang said.

Industrial output is falling around the world, the industry body noted, while growth in German exports is expected to fall from 2.1 per cent last year to 0.5 per cent this year -- its slowest pace since 2009.

Worldwide, exports are expected to fall by 0.5 per cent this year, the BDI said citing a Dutch government study.

German industry is struggling both with political developments, including the US' trade wars with China and the European Union, and with structural changes like the vital car industry's adjustment to building electric and hybrid vehicles.

In the first nine months of 2019, car production fell more than 10 per cent -- "resulting from weak global demand and the structural transformation in the auto industry," the BDI said.