Industrial production declined in Germany as the government prepared to borrow billions of euros

 Last May, industrial production in Germany saw an unexpected decline of 2.5% compared to the previous month, which reinforces inferences that the manufacturing sector in Europe's largest economies may not see a recovery in the coming months

The Federal Statistics Office reported on Friday that economists' expectations, which had indicated a 0.2% increase, were dashed after industrial production fell significantly during the month. Data for April was revised to record an increase of 0.1% instead of a decrease of

On the other hand, the data showed that production remained stable on a quarterly basis during the period from last March to May, after months of continuous decline in factory orders, as it recorded a decrease of 1.6% in May compared to April.

In a related context, Jorg Kramer, chief economist at Commerzbank, announced that “the significant decline in industrial production indicates that there is no rapid or significant recovery on the horizon for the economy,” pointing to the continued slowdown in economic performance during the second quarter of the year. .

Regarding financial policy, German Finance Minister Christian Lindner revealed plans for new debt worth 44 billion euros next year, noting that this step comes within the framework of efforts to curb debt, and that the budget for next year will include expenditures amounting to 481 billion euros, including... Investments worth 57 billion euros, while stressing the lack of austerity in this budget.

At the conclusion of the article, it was emphasized that the German economy may achieve limited growth this year, in light of the continued decline in corporate investment and private consumption.

Source: Agencies