German and French Economies Take Blows

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Britain may be recovering from the impact of Brexit but other Eurozone countries such as Germany and France are starting to go down the drain. The vote of a In or Out decision of Britain to leave the European Union has caused mayhem to Europe’s economy over the last few months with the long term longevity looking doubtful. Analysts had expected the economies of Europe’s two major economies to bounce back so for both economies to decline is unexpected if not alarming.
The decline of the German export industry is the fastest since August 2015. The exact rate of decline was 2.6 percent which is a 3 point swing based on the expectation of a 0.4 percent rise. The cause for Germany’s problems is thought to be due to America, China, and the United Kingdom all reducing their exports.
France was also predicted to bounce back but actually fell 0.6 percent. France was already declining sue to industrial action in May and June when a number of different industries went on strike. New surveys have indicated that the decline is likely to continue with little sign for a bounce back through business investment.
The majority of countries are blaming Britain. The uncertainty of when Britain will actually leave the EU, or if they will at all, is causing a big imbalance in Europe’s economy. Countries are urging Britain to trigger Article 50 and start the leaving process because the longer the uncertainty continues the more Europe’s mainland economies will struggle. However experts, such as Jeroen Dijsselbloem the leader of a group of 20 Eurozone finance ministers, think that the British economy will be the long term loser.