Finance Minister Olaf Scholz has said that he thinks that Germany will soon be able to come out of recession.
As there are various trade conflicts and Britain’s looming European Union exit as a backdrop, recent data has given an indication towards the market slowdown in Europe’s largest economy.
Germany has just entered the recession as it saw two continuous quarters of contraction at the end of the last year. Scholz confidently told that he was quite confident that modest growth will happen.
He told to Inforadio, a public broadcaster, that “The global, European and German data all point to a subdued but nonetheless upwards movement.”
Earlier in the last week, morale among German businesses dropped for the sixth straight month as they forecasted about the drop in case the US could not resolve trade conflicts with China and the European Union.
Scholz further added that there would be no loosening of the public purse strings in response to the drop, as the government is requiring a fiscal reserve in case of a serious economic crisis.
Moreover, there was enough spare cash to pay for an increment in the minimum salary and pension reforms. Actually, Scholz’s Social Democrats, who are the national coalition partners of the conservative bloc, have promised their supporters.
Germany is a western European country. It has its capital Berlin. And the currency of this country is Euro. Since it has seen a slowdown in the trade finance from the previous two quarters, its finance minister Olaf Scholz gives a firm prediction that Germany will soon be out of recession.
In a way, he is trying to make his people worry free. The slowdown in successive quarters of the last year creates a state of uncertainty among people doing trade in Germany.