The German economy is slow this summer, but overall health in the country and the rest of Europe is not in jeopardy. According to the Organization for Economic and Co-operation and Development (OECD) has the smallest chance for growth of all developed economies in Europe.
The OECD?s report says that other nations will slow down, too, but Germany is the most worrisome. Some experts predict that GDP could fall in Q2 2014. These numbers are important, because what is happening in Germany affects the rest of Europe. Geopolitical conflicts and statements that European Central Bank leader Mario Draghi made last week have affected commerce in the region. Specifically, the crisis in Ukraine and economic sanctions against Russia are problems. Around 300,000 German workers depend on trade from Russia. This business is losing speed, companies are losing confidence, and exports are falling even though imports are doing okay. Now, international markets are looking at Germany under the microscope. After two days of calm markets, turmoil in Germany could send European markets downward again. The situation is complicated for Germany, for the euro zone and for Spain.
Although experts think Spain is well-positioned compared to other countries in the region, it is still part of Europe, and it would be a disappointment if all our hard work these past years was affected by hiccups in Germany.
