Wainwright Marks Management - Germany Prepares for Economic Slowdown
January 12, 2019 Business News(PRLEAP.COM) Germany's financial chief recently stated that the good times for Europe's biggest economy had come to an end as the country readies itself for the likelihood of an economic downturn.
Analysts at Wainwright Marks Management say German officials are establishing plans for how to cope with a sudden downturn in economic growth. Tax reductions and overspending are some of the areas to be targeted in an effort to counter Germany's economic troubles.
Wainwright Marks Management analysts are blaming ongoing trade tensions for the sudden turnaround in Germany's economic outlook with the country being particularly affected by activity in the US Sino trade dispute as well as political uncertainty stemming from the outcome of Brexit and Italy's current situation of political turmoil.
Germany's finance minister, Olaf Scholz, has emphasized his intention to prolong the solidarity surcharge for those falling into the higher income bracket and to slowly do away middle and low income surcharges over the course of the next two years.
He also reiterated that a tax reduction for professionals was not possible as it would disrupt the smooth running of Germany's economy.
Scholz stood firm on his position that Germany will not incur any new debts. Wainwright Marks Management analysts say healthy growth of approximately 1.5 percent is still expected for Germany's economy in 2019, only slightly less than last year.
Last week Germany's economy suffered a severe blow when growth in the manufacturing sector declined once again with new orders decreasing at their fastest pace since 2014.