China’s finance ministry has pledged to cut taxes and boost spending, as it fights a slowing economy
- Latest: German GDP only expanded 1.5% last year
- Introduction: China promises tax cuts and spending boost
- Central bank promises “ample” liquidity
- State planner: We’ll make a good start to 2019
- Shanghai stock markets surges 2%
Here’s some snap reaction to the German growth data:
With 1.5% annual growth in 2018, it looks as if a technical recession in second half of the year was just avoided.
2018 proves to be weakest for German growth for 5 yrs. Wld be unwise to call recession (whole yr growth of 1.5% wld imply modest rebound of 0.2% Q4) but clear eurozone losing momentum on whole.
Real GDP grew 1.5% y/y in #Germany in 2018, the slowest since 2013, mainly driven by slower private consumption growth 1.0% y/y (vs. 1.8% in 2017). Despite the recent weakness, we expect the expansion will continue in 2019 driven by domestic demand.
Why did Germany’s growth rate slide to just 1.5% last year, from 2.2%?
Germany’s finance ministry has blamed a handful of factors, including: