The Labor leader and shadow foreign minister David Lammy flew to Germany on Thursday to meet with Chancellor Olaf Scholz. Sir Keir, meeting with the chancellor, is expected to say that Labor is ready to form a government and has a plan to ensure Britain and Germany can work together to boost economic growth.
Deutsche Bank analysts said Germany would shrink in the second half of 2022
However, according to Deutsche Bank economists, Sir Keir’s journey comes as the German economy plunges into recession.
Analysts led by Stefan Schneider said in a report to customers that dwindling natural gas inventories, a downturn in the US and other headwinds will shrink Germany in the second half of 2022.
The analysts also predicted that the country’s economy will contract by one percent by 2023.
The economists added: “It seems reasonable to assume that Russia will continue to look for ways to disrupt economic activity in Europe in retaliation for Western sanctions and financial and military aid to Ukraine.”
The economists went on to say, “This doesn’t necessarily mean a full shutdown,” but “the impact on industrial production and economic uncertainty will almost certainly push the German economy into recession in the second half of 2022.”
Deutsche Bank analysts said Germany would shrink in the second half of 2022
However, according to Deutsche Bank economists, Sir Keir’s journey comes as the German economy plunges into recession.
Analysts led by Stefan Schneider said in a report to customers that dwindling natural gas inventories, a downturn in the US and other headwinds will shrink Germany in the second half of 2022.
The analysts also predicted that the country’s economy will contract by one percent by 2023.
The economists added: “It seems reasonable to assume that Russia will continue to look for ways to disrupt economic activity in Europe in retaliation for Western sanctions and financial and military aid to Ukraine.”
The economists went on to say, “This doesn’t necessarily mean a full shutdown,” but “the impact on industrial production and economic uncertainty will almost certainly push the German economy into recession in the second half of 2022.”
Christian Calgie, senior reporter at Guido Fawkes, mocked the Labor leader’s journey by posting a photo of an article about fears of a recession in Germany.
He added the caption: “Starmer: I’m here in Germany to talk to Chancellor Scholz about how we’re growing our economy.”
Twitter user @trickytree2 chimed in, saying, “Why is this clown walking around like he’s the prime minister…”
User @DufferRoy also said, “Did I get this right? Our economy grew 0.5 percent and Germany is on the brink of recession, but Sir Keir wants their advice? On what?”
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The ONS added that “monthly GDP is now estimated to be 1.7 percent above pre-coronavirus (COVID-19) pandemic level” in the UK.
By contrast, the official EU statistics agency Eurostat said on June 29 that “[EU] GDP remains 0.8 percent below the pre-COVID level of 2019.”
In its Spring 2022 Economic Forecast, the European Commission blamed the Russian invasion of Ukraine for their economic woes.
In Germany, Sir Keir and Lammy met with politicians and businessmen on Thursday.
The pair arrived at the German chancellery around noon to meet Wolfgang Schmidt, the German federal minister for special affairs, head of the chancellery and commissioner of the federal intelligence service.
During their visit, they also want to discover what Britain can learn from the ‘best economic models’ around the world.