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Blokland’s daily sketch

Blokland’s daily sketch

20-08-2019

Germany eyes stimulus in case of deep recession

  • Jeroen Blokland
    Jeroen
    Blokland
    Portfolio Manager

It has taken a while, and would require a ‘deep’ recession, but German politicians are finally open to the idea of government stimulus. Germany’s economy contracted in the second quarter of this year and could be heading for a recession. However, significant government stimulus is likely to depend on a more severe recession than the one that could be approaching now. In addition, the EUR 50 billion stimulus package being mentioned would be less than last year’s government surplus alone. With a debt-to-GDP ratio rapidly falling towards 60%, an exception in a world of debt-stricken governments, perhaps a somewhat more ‘courageous’ policy is warranted.

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As a senior portfolio manager I use charts to illustrate financial issues every day. I tweet my favorites as @jsblokland and was named 'one of the 50 most important people for investors to follow in 2018' by MarketWatch.
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