Germany's economy is facing growing headwinds from weaker growth in emerging economies such as China, a survey of German companies showed on Thursday, suggesting growth in Europe's largest economy will slow significantly next year.
The German Chambers of Commerce, or DIHK, said its survey of more than 27,000 companies indicates that hopes for a slight upswing next year, such as those expressed by the German government, are unfounded. The group lowered its growth outlook for 2015 to 1.7 per cent from a 1.8 per cent forecast previously, and predicted growth of only 1.3 per cent for 2016. This compares with the government's forecast of 1.7 per cent growth for this year and 1.8 per cent for 2016.
"Optimism for the coming months is fading in the whole economy," DIHK said in its report. "The industrial sector is particularly cautious, as companies' concern is growing with regards to foreign demand."
The outlook for German exports has deteriorated as the risks of a setback are unusually high, the DIHK report said. The weaker euro -- which helped spur demand in recent months -- is no longer a boost for exporters as the exchange rate has stabilised, it added.
"It's getting less comfortable," the report said. "Several emerging markets, such as in South America, are weakening. Heavyweight China is entering a notable weaker growth path. The robust performance in the US and Europe is supporting German export business, but can only partly compensate for their negative development."
The number of respondents predicting their export activities will fall rose to 14 per cent from 10 per cent in the spring, while 56 per cent said the situation would remain unchanged, compared with 59 per cent previously. The proportion of those expecting an improvement fell to 30 per cent compared with 31 per cent previously.
The DIHK forecasts that German exports will climb 5.0 per cent this year after a rise of 4.0 per cent in 2014, but will slow to 3.5 per cent growth in 2016.
In the DIHK survey, 23 per cent of companies saw improvements ahead, lower than the 26 per cent of respondents in the previous survey in the spring. About 14 per cent of those surveyed said they thought Germany's economic situation will worsen, up from 13 per cent in the previous survey. The percentage expecting the situation to remain the same rose to 63 per cent from 61 per cent.
Companies remained upbeat about their current business situation, with 44 per cent saying their situation is good, up from 41 per cent previously, while 47 per cent said they are satisfied, down from 50 per cent in the spring. Only 9 per cent said they aren't doing well.
Deutsche Bank Colombo continues its efforts in proving clean drinking water to rural areas October 2015 | Sri Lanka
Sri Lanka is a fast-growing nation, proven by many economic indicators. Its Gross Domestic Product has grown steadily over the last five years, with an aggregate of more than 35%, while indices such as per capita income, inflation and unemployment post encouraging results. Despite healthy economic indicators, problems continue to exist, largely in rural parts of the country. more
Deutsche Bank, Sri Lanka: Constructing disabled-friendly toilets July 2015 | Sri Lanka
July 4, 2015 was a bright and beaming Saturday morning in Colombo for the 12 Deutsche Bank volunteers embarking on a special journey at Wennappuwa. Their objective was to aid in the construction of a disabled-friendly toilet for a man who had sacrificed his physical wellbeing for the sake of his country. The 12 volunteers gathered at the Bank premises and looked forward to participatinge in this meaningful activity. more
The School for the Blind Colombo gets a dedicated English classroom
Camp Project – Kanduboda West Delgoda
Deutsche Bank funds the Mobile Vision Care Clinic for the underprivileged
Reading rooms for rural schools in Sri Lanka
New school building and water filters for villagers of Haburugala, Sri Lanka
Deutsche Bank Colombo Branch supports rural community in Medawachchiya with eye camp and basic resources for school
Recycling Paper Project helps women in Sri Lanka generate a livelihood
Deutsche Bank plants 1,600 tress at Halgolla, Sri Lanka
Providing eye care to the underprivileged in Bandaragama
Deutsche Sri Lanka’s water supply and storage project provides water supply to Dickoya Base Hospital
Volunteers helped out at the Chest Hospital
Deutsche Bank provides clean drinking water to villages in Sri Lanka
Providing eye care to the rural villagers
Deutsche Bank sponsors an eyecare screening programme for schools
Deutsche Bank sponsors book launch – “Protect Your Child from Injury”
Environmental Day 2012 - making the world a better place
Children from Methkekulu Preschool visit Colombo
Deutsche Bank funds a Peer Group Training Programme with the Spinal Injuries Association
Deutsche Bank Colombo initiated eye clinic in impoverished district
Corporate volunteers visit the Ceylon School for the Deaf and Blind
Deutsche Bank Sri Lanka attends the Installation Ceremony for cluster dental clinics
Deutsche Bank Sri Lanka organizes eye camp for 800 rural villagers
Dental surgery units set up to improve oral health of 8,000 school children
Establishing dental clinics in remote locations of Sri Lanka
Volunteers from regional Deutsche Bank offices pull in to help in Sri Lanka
Deutsche Bank has had a big Leadership Shake Up and I think they are going to look for deals that give them a Safe Haven for their Capital and they understand how special Disruptive; Critical Materials are.
SL Vein is one of the Top 3 Strategic Materials in the world by my calculations in my opinion!!!
I think my Logic is looking more and more likely to produce an amazing result. I predicted Banks stepping into owning Veiners - Particularly the leader which I contend is MRL Corporation that I have moved up this Prediction on my Mind Map! I gave it a less then 10% likelihood but now I give it more then 20% + likelihood that just like SYR - Deutsche Bank wants to position itself for what is coming into Veiners and MRL Corporation is on top of the LIST in my opinion.
They are no fools and they understand Material Science and they understand Assets and they understand what they MRL Corporation ORE into GRAPHENE results and how historic they are.
Just like Insurance Companies make Predictions I try to make Predictions - Companies are People and People are Predictable enough to make Insurance contracts.
Of course it is easy to be 100% Wrong!!!
This Prediction is fun - I called Deutsche Bank Sri Lanka and had a fun talk a while ago and they gave up nothing!
Fun Deduction though to track.
I like watching Banks and talking to Banks simply because they have their finger on the pulse of the Government and Industries.
Kind Regards
DYOR !!!
Mistakes are Easy!!!
Predictions are fun only!!!
MRF Price at posting:
6.7¢ Sentiment: Buy Disclosure: Held