🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

German Stimulus Program Not on the Cards, Economy Minister Says

Published 09/24/2019, 06:04 PM
Updated 09/24/2019, 07:51 PM
© Reuters.  German Stimulus Program Not on the Cards, Economy Minister Says

(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. 

Germany is not on the verge of a recession and old-style stimulus programs are not in vogue any more, Economy Minister Peter Altmaier said on Tuesday.

While Altmaier denied the country was heading into a recession, he said the deteriorating international scenario was beginning to weigh on the export-driven economy.

"I think old-style stimulus programs are not in vogue anywhere anymore, at least I haven’t heard any demands of that sort," Altmaier said. "But I also think it makes sense to improve the framework conditions now and not waiting until the economy gets off track."

His comments are likely to douse any hopes that Germany could be moving closer to boosting government spending as a way to kick-start the economy. GDP contracted in the second quarter and is expected to do so again in the third, confirming that Europe’s biggest economy is in recession.

The government has been expanding investments to strengthen Europe’s largest economy but has stayed clear of a stimulus program similar to 2009 when it launched a comprehensive program of 50 billion euros ($55 billion) to counter a deep recession. Back then the measures included subsidies to reduce working hours and a cash for clunkers program to stimulate the ailing car industry.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.