ROUNDUP: Forecast: German economy is growing, but below the EU average
BRUSSELS – According to the European Commission’s autumn forecast, the German economy will pick up speed next year, but will still remain just below the EU average. As can be seen from figures presented in Brussels, economic experts expect an increase in gross domestic product (GDP) of 1.2 percent for the Federal Republic of Germany in 2026. An average increase of 1.4 percent is expected in the EU, and an average increase of 1.2 percent in the countries with the euro common currency.
Ifo Institute: Business climate in housing construction worse
MUNICH – The mood in residential construction deteriorated slightly again in October. After a strong increase in September, the business climate index fell from minus 22.0 to minus 23.0 points, as the Ifo Institute announced on Monday. Companies were somewhat less satisfied with current business. In addition, their expectations for the coming months were more skeptical. “The way out of the valley is still long,” said Klaus Wohlrabe, head of the Ifo surveys. Missing orders remained a key problem.
Study: Chinese are pushing into the German market with cheap goods
COLOGNE – Because of the tariff conflict with the USA, according to a study, China has redirected masses of goods to Germany in order to sell them quite cheaply here. The German market has been “flooded,” according to a study by the German Economic Institute (IW) in Cologne sponsored by the Foreign Office. In the first half of 2025, Chinese imports to Germany increased by eleven percent and the price fell by almost four percent. At the same time, Chinese exports to the USA fell by almost 16 percent.
ROUNDUP 2/Klingbeil on rare earths: China hears our concerns
BEIJING – Vice Chancellor Lars Klingbeil gives German companies hope for easier access to raw materials such as rare earths from China. He was promised that German and European concerns about export restrictions would be taken seriously, “and that we want to find common solutions in the sense of reliable access and reliable supply chains,” said the Finance Minister after talks with Chinese Vice Prime Minister He Lifeng in Beijing.
Japan’s economy will not shrink as much in the summer as feared
TOKYO – Japan’s economy contracted in the summer due to weak exports and investment. In the three months of July to September, the gross domestic product (GDP) fell by 1.8 percent on an annualized basis compared to the previous quarter, the Japanese government announced on Monday in Tokyo. It was the first decline since the beginning of 2024. However, experts surveyed by Bloomberg had expected the contraction to be somewhat greater. Japan’s economy still grew strongly in the first two quarters of 2025.
Swiss economy is shrinking significantly due to US tariffs
BERN – The US tariffs on goods from Switzerland have put a surprisingly heavy burden on the country’s economy. In the third quarter, the gross domestic product (GDP) shrank by 0.5 percent quarter-on-quarter, as the State Secretariat for Economic Affairs (Seco) announced on Monday in Bern according to an initial estimate. This means that economic development was significantly worse than economists expected. Analysts surveyed by Bloomberg had on average only expected a slight decline of 0.1 percent for the three months of July to September.
ECB Vice President warns of price losses on the stock exchanges due to AI shock
FRANKFURT – The Vice President of the European Central Bank (ECB), Luis de Guindos, has warned of the danger of price losses on the stock markets. This could come from highly valued US tech stocks and the hype surrounding artificial intelligence, said de Guindos on Monday at the “Euro Finance Week” in Frankfurt. The Financial markets are vulnerable to sharp adjustments in asset prices.
Fed Vice President Sees Downside Risks to Employment
KANSAS CITY – Fed Vice Chairman Philip Jefferson has highlighted possible risks to the American labor market. In a speech at the Kansas City Regional Reserve Bank on Monday, he said downside risks to employment have increased in recent months, according to the text of the speech. At the same time, Jefferson also made it clear that the risks to inflation were on the upside.
ROUNDUP 2: Arms export restrictions for Israel will be lifted
BERLIN – After three and a half months, the federal government is lifting the restrictions on arms exports to Israel imposed because of the Gaza war. This decision will apply from November 24th, government spokesman Stefan Kornelius told the German Press Agency.
ROUNDUP 4/Poland: Attack on railway track was probably intended to blow up train
WARSAW – In Poland, unknown people carried out an explosive attack on a strategically important railway line. The Polish government spoke of an act of sabotage. She assumes that the attack was aimed at a train. “The explosion not far from the town of Mika was most likely aimed at blowing up a train from Warsaw to Deblin,” said Poland’s Prime Minister Donald Tusk during a visit to the site. “Fortunately there was no tragedy, but the matter is very serious.”
Customer note:
ROUNDUP: You read a summary in the economic overview. There are several reports on this topic on the dpa-AFX news service.
/jkr