News including daily special Russian-Ukrainian editions when trade tensions make investment difficult, Olaf Scholz
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Germanyhas moved to a $ 1 billion trade deficit. This means that the country's imports exceed its exports. This is the first time a European country has been in a trade deficit for over 30 years. The deficit was caused by rising energy prices, increasing the cost of importing into Europe's largest economy.
Meanwhile, global trade turmoil has put pressure on exports.
Imports increased 2.7% from April to May to € 126.7 billion, according to data from the Federal Bureau of Statistics (FSA).
Meanwhile, exports fell 0.5% month-on-month to € 125.8 billion.
Germany's top industries have warned that they are facing a collapse as a result of Russia's reduced supply of natural gas.
The largest economy in the euro area is unstable(Image: Getty)
Yasmine Fahimi, head of the German Trade Union Confederation (DGB), told the German Outlet Built: .. The entire industry, including the aluminum, glass and chemical industries, is at risk of permanent collapse.
"Such a collapse will have a huge impact on Germany's economy as a whole and employment."
Fahimi to tackle record inflation as a result of the energy crisis. Demands a price limit for energy in the home.
She warned that the crisis could lead to social and labor insecurity.
Germany has a $ 1 billion trade deficit(Image: Getty)
Mr. Scholz said the war in Ukraine "changed everything"(Image: Getty)
German Chancellor Olaf Scholz warned that the crisis "will not pass in a few months." ..
Scholz said the war in Ukraine is likely to result in a crisis, "changing everything and the supply chain is still confused by the pandemic."
Pantheon Macroeconomics economist Claus Vistasen agreed and warned that the deficit is expected to continue during the summer.
An economist told the Financial Times, "Germany's trade surplus has evaporated, otherwise offsetting export momentum, largely due to the surge in imports."
Eurozone living cost crisis(Image: Express)
Meanwhile, Reiner Dargah, head of the Confederation of German Management, said Germany was "the toughest economic and social crisis since unification." Warned that he was facing. ..
Additional report by Monika Pallenberg.