The car emissions uproar that German car manufacturers mired in can have detrimental effect on EU’s number one economy, as the country’s finance ministry said today.
The situation that got ignited around two years back, when German producer Volkswagen confessed it had fudged U.S. emissions tests, has now been called in a report by the ministry, a menace to the country together with Brexit and American protectionist sentiments in trade.
However it has been declared that the possible harm couldn’t be evaluated in exact figures. Risks connected to the way Britain carries out its decision to abandon EU and how U.S. trade policy evolves remain, the ministry stated.
And along with that, the diesel scandal needs to be regarded as another risk to the economy of Germany although the impact of it can’t be estimated at this time.
Robust household and government expenditures gave major push to the economy in the April-June quarter, with growth reaching 0.6%. Decreased net overseas trade slowed growth, as imports went up much faster than exports.
The ministry’s words were that it anticipated the industries to keep climbing further in the current quarter, taking into account vigorous orders and optimistic business outlook.