German Finance Ministry Serious about Volatility but not Panicking

Germany is taking recent market volatility “very seriously,” but a finance ministry official told CNBC there was no reason to panic.

Jens Spahn, the parliamentary state secretary for Germany’s Federal Ministry of Finance, said Germany’s economy was relatively insulated from the global stock sell-off, despite its trade ties with China.

“Germany is one of the biggest exporters in the world. Our car industry depends on what happens in China,” he told CNBC on Wednesday at the Handelsblatt Banking Summit in Frankfurt.

“But we are not panicking because we have growing domestic demand and salaries. And so far, besides stock markets, we don’t see any impact [on the economy]—but we’re taking it seriously.”
Global markets have faced extreme volatility over the past two weeks sparked by turmoil in Chinese stocks and fears over a slowdown in Chinese growth, following a raft of disappointing economic data.

Thirty-five year-old Spahn, who is known as the right-hand man of Finance Minister Wolfgang Schaeuble, said the country was still expecting to see its economy grow 1.8 percent this year, despite concerns over both China and the dramatic Greek debt negotiations that took place earlier this summer.

via CNBC

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.