Global recession could be “inevitable” under Trump – German exporters
The head of Germany’s influential exporters’ association lashed out on Tuesday at US President Donald Trump, describing him as obsessed with power, and saying he could trigger a global recession. "By winning the election, Donald Trump has now got his dream business and sees the US as his company," said Anton F Boerner, who heads […]
The head of Germany’s influential exporters’ association lashed out on Tuesday at US President Donald Trump, describing him as obsessed with power, and saying he could trigger a global recession.
"By winning the election, Donald Trump has now got his dream business and sees the US as his company," said Anton F Boerner, who heads the German Federation of Wholesalers, Foreign Trade and Services (BGA).
"If the US president’s ideas for new trade barriers were to be implemented, in particular against China, it would have a catastrophic effect on the export-oriented German economy as well as for our country," said Boerner.
"A global recession would be inevitable," he said in a lengthy critique of the new US president’s policies. "He only understands tough talking," he said.
The US is now the single biggest destination for German exports. Germany is also the world’s leading export nation, the BGA said.
Boerner’s comments came ahead of the release of data on Thursday, which analysts predict will show a slump in German trade in December.
As a result, the figures are likely to underscore the risks facing the global economy, which include Britain’s plans to exit the European Union and an unpredictable Trump-led White House.
The BGA chief believes the arrival of Trump in the White means that it time for Germany to forge new alliances with nations in Asia, Latin America and Canada.
"We must be hard and self-assured, which is the only thing that impresses Trump the entrepreneur," Boerner said.
"You will feel merciless competition," he said, addressing Trump directly.
The Berlin-based BGA expects German exports to grow by 2.5 per cent this year to a new record of 1.235 billion euros.
But Boerner said the list of uncertainties facing the global economy, including the Trump presidency, meant that there was "a big question mark" over the forecast.
The BGA chief’s remarks also coincided with the publication of data showing German output posted a surprise slump in December as the onset of cold winter weather hit the nation’s key industrial sector.
Industrial production in Europe’s biggest economy contracted by 3 per cent in December from November when it grew by 0.5 per cent, the Ministry for Economics said on Tuesday.
Analysts had forecast a modest 0.3-per-cent gain in December.
The November increase was slightly higher than ministry’s original estimate of a 0.4-per-cent rise.
Industrial production was 3.4-per-cent lower compared with the same month last year, the figures showed. (DPA)