Germany on the brink

GDP in Europe’s largest economy fell 0.1% in the second quarter and early signs for this quarter are ominous. Alex Rankine reports.

Germany is "teetering on the edge of a recession", says Andrew Kenningham of Capital Economics. GDP in Europe's largest economy fell 0.1% in the second quarter and early signs for this quarter are "ominous". The downturn has weighed on market sentiment. The Dax index, which contains 30 blue-chips, has shed 7% of its value since the start of July.

The global trade war is a serious problem for a country where exports represent a massive 47% of total GDP.As economist PatrickArtus tells Les Echos, the German economy is heavily weighted towards the automobile industry, chemicals and massive exports of industrial machinery to China. What's more, this economic model could nowbe faced with "obsolescence".

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Markets editor

Alex is an investment writer who has been contributing to MoneyWeek since 2015. He has been the magazine’s markets editor since 2019. 

Alex has a passion for demystifying the often arcane world of finance for a general readership. While financial media tends to focus compulsively on the latest trend, the best opportunities can lie forgotten elsewhere. 

He is especially interested in European equities – where his fluent French helps him to cover the continent’s largest bourse – and emerging markets, where his experience living in Beijing, and conversational Chinese, prove useful. 

Hailing from Leeds, he studied Philosophy, Politics and Economics at the University of Oxford. He also holds a Master of Public Health from the University of Manchester.