The latest figures for the German economy are out, and they show subdued activity in both manufacturing and service sectors.
CGTN’s Peter Oliver has more.
#German #Economy #Eurozone
CGTN’s Peter Oliver has more.
#German #Economy #Eurozone
Category
🗞
NewsTranscript
00:00Well, it's worthwhile pointing out these PMI figures relate to the confidence of those involved in the industry and in
00:07Manufacturing it's it's particularly a grim outlook here in Germany
00:10You can put that down to a number of key factors energy prices first off and foremost in
00:16Everybody's mind if you're involved in the steel industry in car manufacturing and the manufacturer of anything
00:23That is highly energy dependent then well
00:26You're going to be suffering because you're going to have to charge more for those products
00:29Which are available cheaper elsewhere, and they've been reliant on the the brand made in Germany for too long
00:35And as we've seen in the confidence from the the PMI well confidence is low orders are down
00:41There's also something we've not talked about a journey for a long time
00:45And that's political instability the Schultz government collapsed back in November
00:49But really the three parties that made up the coalition
00:52Hadn't been able to agree on anything since they came to power, and they haven't really agreed on anything important for over a year
00:59Therefore they weren't able to put in place the reforms of the economy that they desperately
01:03Wanted to do and that has had a huge impact now another issue when it comes to looking forward is
01:09Well the impending arrival of Donald Trump his return to the White House and the tariffs that he said he wants to put in place
01:16if he was to do just what he said and not go any further, then the likes of the
01:22German Economic Institute and the German Bundesbank are predicting that the four years of the Trump presidency could harm me the German GDP by
01:311.5% so there are a number of factors things that have happened things that are happening and things that perhaps may well happen
01:37And that's why we've seen this impact on the numbers well Peter. What is interesting is you know?
01:42Despite of the contraction of his PMI and also is so is sexer the number of Germans in
01:48Employments in 2024 was at the highest level since reunification, so what is going on?
01:57Right that's right
01:57But you have to look at what jobs those people are going into the vast majority of those entering the workforce in
02:03Germany in 2024 were migrants coming from outside of Germany and outside of the European Union in many cases and
02:11the jobs they're going into tend to be more in the
02:14in in the service sector as opposed to manufacturing because
02:18When you look at manufacturing and you start peeling back those numbers it looks quite ugly under the hood you're talking about
02:2550,000 or so manufacturing jobs in Germany that have gone in
02:292024 18 months of steady
02:32contraction in the amount of jobs in manufacturing that are available you're also looking at
02:39The the number overall the figure of German unemployment currently stands at six point one percent of the the available workforce now
02:46Just cast your minds back to 2019 that was at three point one percent
02:50So while the number of Germans who are in in employment has increased that's predominantly due to to migration
02:58Because the the actual unemployment rate in Germany still far higher than anybody would want it