Germany sees limited fallout from China economic slowdown

“The concerns that have arisen because of developments in China are certainly justified”.

“The geographical diversification of German exporters should cushion any further weakening of Chinese demand“, he said.

“There are solid reasons to be anxious about the global growth outlook, given emerging markets and systemic fears in China”, said Valentijn van Nieuwenhuijzen, head of multi-asset strategy at NN Investment Partners. “Our forecasts were already cautious but they are realistic, as shown now”, he said.

The news comes as Germany’s government said on Tuesday it will stick to its forecast of 1.8 percent growth in the country this year and next despite turbulence in China.

Germany’s economic growth was led by exports last quarter, highlighting the risks to Europe’s powerhouse as a slowdown in China threatens to curb global trade.

Destatis also confirmed that compared with the same period of the previous year, the German economy grew by 1.6 percent in the second quarter, offering jobs to 42.8 million people, 0.4 percent higher than a year ago. The index is compiled via a survey of German companies.

Germany’s exports, which usually drive growth, were healthy at the mid-point of 2015, figures from the Federal Statistics Office showed.

Overall, domestic demand knocked 0.3 percentage points off the GDP growth. Oppenheim. But other markets in Asia posted modest recoveries, including Hong Kong and Sydney.

ING DiBa economist Carsten Brzeski said that “either the ongoing stock market turbulences came simply too late to have an impact on the Ifo survey and will therefore only unfold their full negative impact next month, or German businesses are a bunch of ice-cold realists, sticking to the pure facts”.

Around half of Germany’s 30 blue-chip companies reported consensus-beating financial results for April-June.

For most of the day, it appeared that the market had shaken off some of its worries about the slowdown in China, and at one point the Dow was up by as much as 441.

According to provisional calculations, exports of goods and services rose 2.2 percent sequentially following a 1.2 percent rise in the first quarter.