After stagnating in the second quarter, Germany’s economy does not expect a sustained recovery in the coming months, based on recent indicators such as new industrial orders or business sentiment, the economy ministry in Berlin said on Monday, citing Reuters. and Agerpress.

German industry is facing pressure from weak demand from China, compounded by labor shortages, tight monetary policy and the lingering effects of last year’s energy crisis.

The International Monetary Fund has estimated that Europe’s largest economy will be the only one among the major industrialized countries to contract this year. In a report published on Monday, the Ministry of Economy in Berlin warned that “the expected restart did not take place at the beginning of the summer”.

“At the domestic level, the expected return from private consumption, services and investment shows the first signs of hope, which is likely to strengthen during the year,” said the monthly report of the Ministry of Economy.

However, “still weak external demand, continued geopolitical uncertainty, still high price growth and the increasingly visible effects of monetary policy tightening are weighing on a stronger economic recovery,” the report also said.

The German economy never managed to get out of recession

“Current indicators, such as new orders in industry and the morale of the business environment, do not yet point to a sustained economic recovery in Germany in the coming months,” the authors of the report emphasize.

According to seasonally adjusted data released at the end of July, Germany’s gross domestic product registered zero growth in April-June 2023 after two consecutive quarters of 0.4% and 0.1% respectively.

Stagnation of the German economy in the second quarter of this year is lower than the estimates of analysts, who expected a growth of 0.3%.

Germany is Romania’s main trading partner, and at EU level, Germany is the main destination for goods exported by 17 member states and one of the top three destinations for 22 member states.