German Economic Growth Lowest in 5 Years

European powerhouse slows down in 2018

Germany just managed to avoid a technical recession as domestic demand keeps sales up while exports continued to fall. The substantial slow in 2018 could be a factor of reduced Chinese demand on German goods as Trumps tariffs take effect.

Although the German economy grew by 1.5% in 2018, this is the weakest growth since 2013. The previous year growth was at 2.2%, a substantial drop in one year. There was continued fear of a technical recession in Germany after the industrial production figures dropped between October and November, a problem Manufacturers are facing. What does this mean for the Euro? Less demand for a major exporter in the EU means less demand for the Euro. The Euro should see depreciating values unless future data says otherwise.

Many of Germany's trading partners are starting to hit slowdowns in growth. The manufacturers in Germany are being hit by poor sales following signs of economic global slowdown and political uncertainty surrounding Brexit. The US and China trade war continues to hit German exports.

On a positive note German unemployment rate has fallen significantly, in the past years. This suggests a strong labour market which helped bring Germany sales up in the final quarter.

  • 5% Unemployment rate.

  • Lowest rate in over 25 years.

Overall, the Euro has been facing difficult issues all over the Europe. The Italy debt crisis and global slowdowns have had a heavy impact on the demand of the Euro. We should see a continuation in the dropping value of the Euro until there is political stabilisation and a trade agreement in the US and China.

To keep up to date with the latest news, education and analysis head to the logikfx info centre.


Do you want better trades?

Hey, we're Logikfx. We're determined to make consistent trading a reality for all. Get email notifications of all our up-coming trade ideas and much more. The question is, are you ready?


 COMPANY simplifies complex financial trading information and processes, so anyone can have complete confidence with their trading portfolio.


Learn to trade through online videos, articles, webinars, and workshops. The Logikfx Portal has everything you need to build yourself a long-term trading plan.


Nominated as ‘Best New Forex Education & Training UK 2020’ - by Global Banking and Finance Review

Macro Currency Strength Meter ranked as 'best automation tool for retail traders' - by E-Forex Magazine

©2017 - 2020 Logik Fx Ltd. 


Trading in securities can lead to significant losses, that may exceed your initial investment. You should seek advice from a licensed professional to determine if trading is for you. Logik Fx Limited is not an investment advisor. Further, owners, employees, agents or representatives of Logik Fx Limited are not acting as investment advisors. All persons and entities (including their representatives, agents, and affiliates) contributing to the content on this website are not providing investment or legal advice. Nor are they making recommendations with respect to the advisability of investing in, purchasing or selling securities, nor are they rendering any advice on the basis of the specific investment situation of any particular person or entity.


All information on this website is strictly informational and is not to be construed as advocating, promoting or advertising registered or unregistered investments of any kind whatsoever. All of the information on this website is for educational purposes only and is not to be construed as investment or trading advice. ​For the full disclaimer click here.