1. In this article it is easy to see that Germany is not untouched
by what is happening in Europe. Many companies and people are feeling very
pessimistic about the future of German exports. German banks still believe that
there will be a turnaround for exports and one in eight expect exports to fall.
Also German economic growth has been greatly reduced. It has only grown 0.1
percent from January to March.
2. This topic really relates to GDP. In
particular in pertains to the GDP formula we covered in class. Because of the
decrease in exports our formula ( C+I+G+Net Exports) will show that GDP will
decrease. Also because of the decrease in optimism for exports the consumption
will also go down. This leads to Germany's GDP falling, which is not good at all
for Germany's economy.
3. It will be very hard to fix this
situation. The best way would be to find a way to increase optimism in exports.
If companies have more faith in their exports then the economies GDP will not
fall as much or any because consumption will not go down but instead will
probably rise. Another solution would be to break away from the European Union.
Nine out of the seventeen countries in the Union are in a recession and holding
Germany's economy down. This solution would have terrible consequences for the
other countries.
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