Thursday, November 8, 2018

German Economy Report

About a month ago, Bloomberg did a financial status review of Germany, and laid out the path for 2019....which doesn't look that great. 

The basic negatives?

1.  There are regions in Germany which have some positives brewing (mostly Bavaria and Baden-Wurttemberg....to the south), while other regions are sinking with nothing much positive to say for the near-future.

2.  Skill labor issues are being noticed and there's no real solution at hand to fill some of these jobs.

3.  The drought of 2018?  It hurt farmers in Germany a good bit.  If things return to a normal state in 2019....fine.  If not....then there's some long-term issues brewing.

4.  The coal-mining and steel industry?  They have long-term issues brewing. 

5.  Bridges and roads got brought up in this report....mostly because of infrastructure repairs needed for the future.

The report concludes that regional issues are becoming noticeable and political instability is more likely to occur in the future.  As they suggest....the 'haves' will be in conflict with the 'have-nots'.

This is not to say a revolution is underway or some massive chaos....but these are all elements which might make the 2021 or 2025 national elections less predictable, and perhaps bring out someone beyond the CDU or SPD network of political players as Chancellor. 

Anyway, I recommend reading over the Bloomberg report (in English).....I noted the site above, and it does touch on a number of economic topics. 

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