DIW President Marcel Fratzscher warns of the consequences of a struggling US economy for Germany and calls on the new federal government to take action. “A US recession is becoming increasingly likely and the United States could drag Germany and the rest of the world into a painful downturn” Fratzscher said to the “Redaktionsnetzwerk Deutschland”. US President Donald Trump is solely responsible for the economic downturn – with his trade conflict, withdrawal from multilateral agreements and erratic behavior. The United States is the main sufferer of trade conflicts, but Germany is also paying a high price in already difficult times. Fratzscher warns that the likelihood of a third consecutive recession year in Germany is high. “The concern is great that the German economy is suffering permanent damage from this. The new federal government must urgently find a better response to the economic threat from the US and, in particular, strengthen Europe” demanded the DIW chief.
DIW Warns of Recession and Calls for Action
