Germany’s Finance Minister, Olaf Scholz had ruled out any possibility of injecting new monetary stimulus as debts to stimulate slowing German economy and blamed external factors like trade disputes and risk of United Kingdom leaving European Union behind this year’s anemic growth.
In a BBC interview aired on Friday, the 19th of April, 2019, the social democrat finance minister, Scholz had also thrown away any fear that the Europe’s largest and world’s fourth-largest economy could enter into a recession in a near-term outlook.
Never the less, financial data released so far this year, had not actually supporting the comments of German Finance Minister, as Italy had been in a technical recession, while Germany and France did not seem to be a million miles away from it.
Besides, the German right-left coalition government had halved the country’s growth forecast to 0.5 percent earlier this week. However, blaming politics behind recent financial shortcomings, Scholz said, “We just have softer growth, which is far away from a recession, and if you are really a globalized economy, if you are a big exporter and importer all the developments in the world economy will have an impact on the development of your country.
And we know that there is a slowing of the world economy. And we know where this comes from. It is mostly political reasons”.