Spiegel: Germany Prepares for Economic Downturn

International Monetary Fund analysts warn that the global economy confronts multiple risks, and the global banking system is not prepared for a downturn. Stock markets are losing value, and trade disagreements reduce efficiency and heighten uncertainty. Tightening US monetary policy and rising interest rates pose problems for emerging economies that have borrowed in dollars. Brexit, populism and high debt loads are other risks prompting analysts to predicting reduced economic growth. “Many countries are still dealing with the consequences of the last financial crisis,” explains Christian Reiermann for Spiegel Online. “State debt in France and the United States, for example, is about 100 percent of their GDP. If a new crisis were to take place, the governments of many countries would hardly have the financial elbow room for spending programs or tax rebates.” Germany makes preparations for sinking growth by balancing budgets and reducing debt loads to allow for tax cuts, stimulus investment and other financial tools in the event of a recession. – YaleGlobal

Spiegel: Germany Prepares for Economic Downturn

Clouds gather on the horizon of the global economy and the risk of a recession is growing; experts suggest the international banking system is unprepared
Christian Reiermann
Tuesday, January 15, 2019

Read the article from Spiegel Online about risks for a global downturn after a nine-year expansion.

Christian Reiermann writes about public finances, taxes, the economy, the euro and the global economy for Spiegel Online.

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