German Finance Ministry: Turkish crisis adds to risks of Brexit and trade war

In its monthly report, the German Finance Ministry the “economic developments in Turkey present a new, external economic risk” to the economy. Germany is the second largest foreign investor in Turkey.

That adds on trop of Brexit as “risks remain particularly with regards to uncertainty over how Brexit is going to pan out”.

US trade policy is another main risk as “the persistent debate about tariffs and the threat of a trade war are choking trade activity.”

Nonetheless, despite the risks, the Minstry said the economy remains supported by state spending, private consumption, low interest rates, a robust labor market and rising real wages.