More gloom ahead for Germany's struggling car industry

Supplied

Germany's export-oriented car industry will not see a significant recovery from its current slowdown, the chief economist of Germany's Ifo institute said on Thursday. Germany's export dynamic is very weak, Klaus Wohlrabe said as the institute's business climate index, a key indicator of the economic sentiment in Europe's biggest economy, fell more than expected in May.

Wohlrabe said he did not expect the European Central Bank to intervene with stimulus measures, but there would be a political discussion in Germany on how to bring the economy back up to speed after the EU elections.

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