Germany may be facing a possible recession according to warnings from the Bundesbank. The global market may still be vulnerable with the on going trade war between the United States and China. The gross domestic product contracted in Germany three months until June at 0.1 %. Recessions happen when decreases in economic growth happen over a number of following quarters. Chancellor Angela Merkel had assured the public that no stimulus was required to help the economy, but there are indicators that a possible crisis is on the horizon. Germany is not the only country at risk for recession. Italy, the UK, Mexico,China, the US, and Brazil may see economic down turns. This only becomes more complicated with Britain's exit from the European Union. The world's major economies could be seeing another global financial meltdown similar to that of 2008. Many have not recovered from downturn with chances of stable employment and secure retirement out of reach. Germany faces a dilemma with being an exporter of goods to China and still maintaining business relations with Russia. The United States has gradually let relations with these countries decline causing a level of turbulence in global markets. The Trump administration had added more tariffs, but made an exception for certain goods for fear it would harm US consumers during the holiday season. German automakers have trepidation about Brexit and sales have dramatically declined. Industrial output fell to 5% compared to the previous year according to German government data. Germany may be facing the worst economic situation since the early 1920s. While it would be an exaggeration to say there will be another Great Depression, the economy will deteriorate without immediate intervention.
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