German industrial production fell by 1.4 percent in June, revealing the vulnerability of the German economy, the EU's largest and most stable economy.
Some considered the slump quite unexpected, but Mucherie said there is nothing unexpected about it, since Germany has long become dependent on foreign economies and its economic model might not be as stable as it was previously thought.
"We had many indicators that predicted it [the downfall of Germany's industrial production]… China's slowdown was steeper than expected, and generally, the global [economic] slowdown was greater than expected."
The Chinese economy has been plagued by serious ailments, including a volatile stock market, an inflated real estate bubble and decelerating annual economic growth, which was at double digits in its best years not so long ago.
China's slowing economic growth has been a major concern globally. For Germany, in particular, it has resulted in low demand for the car-making industry, as with the economic slowdown Chinese demand for luxury German cars fell significantly. Not so long ago, China was one of the world's biggest importer of high-end cars, but now, according to statements by the local retail branch of BMW, the carmakers have to offer significant discounts in attempts to halt the slump in sales.
