- Title: Germany is facing a recession - Ifo economist
- Date: 26th August 2019
- Summary: MUNICH, GERMANY (AUGUST 26, 2019) (REUTERS) IFO ECONOMIST KLAUS WOHLRABE AT INTERVIEW CLOSE UP OF HIS HANDS (SOUNDBITE) (German) IFO ECONOMIST, KLAUS WOHLRABE, SAYING: "The mood on German management floors has deteriorated again. The Ifo index has fallen for the eleventh time in a row. We are facing a recession in the entire German economy, so at the moment it does not look so good." VARIOUS OF REPORT SHOWING FALL OF IFO CLIMATE INDEX (SOUNDBITE) (German) IFO ECONOMIST, KLAUS WOHLRABE, SAYING: "At the moment, we have to say that this downturn that we are currently observing cannot be compared with the last downturn that we had in 2008/2009. At that time it was much faster and steeper than it is right now. We have been recovering for more than ten years and that's why no one should overreact now if growth is a little lower or slightly negative. At the moment German politics cannot do that much in this regard. One idea could be to bring the abolition of the solidarity tax forward but investment programmes must always be planned for the long-term. The construction industry is still working to its capacity but it takes time before such an investment programme comes into force. That means short-term investment programmes are not helpful at the moment. " VARIOUS OF IFO REPORT (SOUNDBITE) (German) IFO ECONOMIST, KLAUS WOHLRABE, SAYING: "For the third quarter, one can assume that there is stagnation at best but at the moment, the signs show a negative growth rate which would point to a technical recession with high uncertainty. The fourth quarter also looks uncertain as Brexit is present everywhere with the question how hard or soft it will be. So it is very difficult to make a good forecast." CLOSE UP OF REPORT READING (ENGLISH) "IFO WORLD ECONOMIC SURVEY" (SOUNDBITE) (German) IFO ECONOMIST, KLAUS WOHLRABE, SAYING: "In general, I would like to ask people not to panic. In other countries too, mood indicators are pointing downward because of the existing trade war and the burden of Brexit which affects all European countries. As said, we're coming from a very high level which is why you cannot call it a global recession." VARIOUS EXTERIORS OF IFO INSTITUTE
- Embargoed: 9th September 2019 12:17
- Keywords: Ifo index Germany Ifo institute recession business climate economist
- Location: MUNICH, GERMANY
- City: MUNICH, GERMANY
- Country: Germany
- Topics: Economic Events
- Reuters ID: LVA001ATUULXP
- Aspect Ratio: 16:9
- Story Text: Germany is facing a recession, an economist at Germany's Ifo economic institute said on Monday, as the institute's business climate index fell to its lowest level since August 2012.
"There will be a stagnation in the third quarter at best," Klaus Wohlrabe said, adding that this would also apply for final gross domestic product (GDP) figures for the second quarter, which Germany's statistics office is due to release on Tuesday.
"We are facing a recession," he told Reuters.
Wohlrabe added that although the business climate improved in Germany's struggling auto industry, it significantly deteriorated in the engineering, chemicals and electrics sectors.
(Production: Ayhan Uyanik, Elena Gyldenkerne, Michele Sani)
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