GERMANY’S AUTOMOTIVE INDUSTRY SLUMP RESPONSIBLE FOR GLOBAL ECONOMIC SLOWDOWN
Aruba, November 6, 2019 – GERMANY’S prized automotive industry is having a profound impact as the global economy faces its sharpest slump since the financial crisis.
The decline in car production may be responsible for up to a third slowdown in global trade growth between 2017 and 2018, according to the International Monetary Fund. Gian Maria Milesi-Ferretti, denture director of the IMF’s research department, said: “The car sector has been weighing heavily on manufacturing activity and growth.” Last year the automotive sector shrank for the first time since the global financial crisis took grip over a decade ago.
IMF analysts have warned that the industry could become the next casualty of the escalating trade row between the US and EU.
Donald Trump’s administration will decide by November 13 whether 25 percent tariffs on European car imports will be imposed.
Industry insiders have already sought to lay blame on US trade policy for much of the automotive sector’s downfalls.
Herbert Diess, chief executive of German car giant Volkswagen, at the Frankfurt motor show in September said: “This trade war is really influencing the mood of the customers, and it has the chance to really disrupt the world economy.”
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