GERMANY by karen https://padlet.com/karendrmg/5y0akpvls8lg on GDP, inflation and unemployment en-us 2018-05-15 05:00:36 UTC 2018-07-19 09:25:12 UTC hello@padlet.com articles references karendrmg https://padlet.com/karendrmg/5y0akpvls8lg/wish/260718847 GDP

Inflation

Unemployment
https://www.ft.com/content/aac75c32-0664-11e8-9650-9c0ad2d7c5b5
http://www.dw.com/en/germanys-jobless-rate-hits-fresh-record-low-as-economy-booms/a-43180134
https://www.thelocal.de/20180228/unemployment-in-germany-stays-steady-at-historic-low

]]> 2018-05-15 05:13:12 UTC https://padlet.com/karendrmg/5y0akpvls8lg/wish/260718847 GDP yiling0112 https://padlet.com/karendrmg/5y0akpvls8lg/wish/260728794 https://www.bloomberg.com/news/articles/2018-05-14/germany-set-for-slowdown
https://www.thelocal.de/20180515/german-gdp-growth-disappoints-in-first-quarter]]> 2018-05-15 06:38:52 UTC https://padlet.com/karendrmg/5y0akpvls8lg/wish/260728794 Article 1 s10178758 https://padlet.com/karendrmg/5y0akpvls8lg/wish/260729292 German Jobs bonanza pushes unemployment to record low. 

Topic: Unemployment

The article states that Germany's record rate hit an all time low, as of  December 2017 it was at 5.7%. (more specifically  cyclical unemployment.) The economy is expected to grow more in 2018. Due to the strengthening and growing economic performance of the country, the demands for jobs will be higher hence more jobs will be created for the people of Germany thus cyclical unemployment will drop and the country is at full employment and will only be experiencing natural rate of unemployment thus it will lead to an upswing in the business cycle

However despite this increase in unemployment, we must note that the quality of workers and their standard of living are still relatively low and stagnant.  With many workers still remaining in low-wage jobs, and even though the German labor union are seeking to capitalize on the job boom to push for huge salary increases in wage talks with the employee, however wage increase are unlikely to occur in the near future. 
hence this bring out the possibility of future structural unemployment, With the German labor force, primarily consisting of many low-wage job positions, may find themselves being in a unfavourable position or will be threatened if the company were to upgrade their processes and displace all manual labor with the most advanced technology as that will help the company save cost hence only workers with skills and also able to operate those machinery will be able to keep their jobs in such scenario, and workers will be retrenched if the machinery is able to replace you on  what you are doing which is only manual labor. Thus the government should consider adopting skills-upgrading courses and retraining to improve the quality of the workforce so that workers will not be abandoned by the workforce and that they will stay marketable to employers. 
Thus if the economy were to experiencing further growth it will lead to more jobs being created and thus wages may fall further,thus creating a nation full of unskilled workers that are not prepared to handle the challenges of the future.]]> 2018-05-15 06:41:09 UTC https://padlet.com/karendrmg/5y0akpvls8lg/wish/260729292 Article 2 yiling0112 https://padlet.com/karendrmg/5y0akpvls8lg/wish/261624674 Topic: GDP

German GDP growth disappoints in first quarter of 2018.

It is made known in the article that the German economy is growing slower than what had been forecasted in the first three months of the current year. It was predicted by analysts that the GDP will grow by 0.4%, however, it was growing at half the speed, which is the least for more than a year. Moreover, the amount of spending from the government lowered and both imports and exports decreased compared to the last quarter of the previous year, resulting in the fall of real GDP as well.

GDP is the market value of all final goods and services produces in an economy. It can be calculated using the expenditure approach, which is to sum up the personal consumption expenditure, gross private domestic investments, government expenditure on goods and services, and net exports. Therefore, even though this fall in the GDP may be slight but it is a signal that an economic slowdown may happen in the eurozone and it did strike fear for the country. Similarly, investors are not very glad of this signal.

Although the statistics might seem to not be a big problem, Germany has to be wary and start to come up with solutions to fix what may come. Concluding from the article, a fall in real GDP is already a symptom of a recession. Due to this, the government should implement some policies that may enable the economy to rise again. However, if the economy continues in this trend, not just the statistics will be affect, it also results in the rise of unemployment rate, which links back to the first article. ]]> 2018-05-17 15:16:39 UTC https://padlet.com/karendrmg/5y0akpvls8lg/wish/261624674 Inflation https://padlet.com/karendrmg/5y0akpvls8lg/wish/261810532 Article 1: https://www.businesstimes.com.sg/real-estate/germanys-booming-construction-sector-raises-2018-sales-forecast
Article 2 https://www.wsj.com/articles/the-riddle-of-the-eurozones-missing-inflation-1525635726]]> 2018-05-18 05:33:57 UTC https://padlet.com/karendrmg/5y0akpvls8lg/wish/261810532 Article 3 https://padlet.com/karendrmg/5y0akpvls8lg/wish/261810744 Topic: Inflation

Germany's booming construction sector raises 2018 sales forecast

The article shows that Germany is facing inflation  due to the increase in demand for real estate, increased investments in buildings and higher state spending on infrastructure. This is an example of cost-push inflation 

Cost push-inflation happens when there is an increase in the cost of productions. In this case the increase in the cost of production is because of the higher construction prices caused by capacity constraints, labour shortages and rising wages. There is a shortage of resources, thus the general price level in the economy is "pushed up" by the pressure on the cost of production. 

In the article, it says "the nominal sales is expected to experience a growth of 6 per cent this year, up from the 4 per cent it had projected in January. This would bring overall sales volumes close to levels last seen during the boom times. Germany is enjoying a construction boom thanks to a real estate bonanza, increased company investment in industrial buildings and higher state spending on roads, bridges, ports and railways." The increase in demand for construction has resulted in a shortage for resources and labor. Scarcity is happening in this case. 

Overall, the inflation in Germany caused by construction has resulted in an increase in prices of goods and services, casing a rise in wages which further causes and increase in prices of goods and services, which ultimately results in a further rise in wages.
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