German Chancellor Angela Merkel warned Germans that the economy, Europe’s biggest, would experience a harder time this year than last year and cautioned too that the eurozone debt crisis was far from over.
In her annual New Year address published yesterday, Merkel said: “In fact, the economic environment next year will not be easier, but more difficult,” adding: “The crisis is a long way from being beaten.”
Although top exporter Germany has managed to hold up to the crisis fairly well, growth has slowed since the beginning of last year.
Photo: AFP
After expanding by 0.5 percent in the first quarter of last year, GDP grew by just 0.3 percent in the second quarter and a mere 0.2 percent in the third quarter.
And in October, the government slashed its forecast for economic output next year to 1 percent, compared to 1.6 percent previously anticipated.
The country’s gloomy central bank has said Germany may even flirt briefly with recession early this year.
The Bundesbank also forecast that Germany would only grow by a meager 0.4 percent this year.
Nevertheless, “it has been possible this year to have the lowest unemployment and the highest level of employment since the reunification” in 1990, Merkel said.
And a slowdown this year “should not leave us discouraged but should spur us on,” said the chancellor, according to the text of her speech released in advance by her office.
Turning to the eurozone’s efforts to tackle its three-year debt crisis, she said that “the reforms that we have decided are beginning to work. However, we still need more patience. The crisis is a long way from being overcome.”
She appeared more pessimistic than other eurozone leaders such as French President Francois Hollande or even her own finance minister, Wolfgang Schaeuble, both of whom have declared the worst of the crisis over.
In an interview with mass circulation Bild last week, Schaeuble said: “I think the worst is behind us,” citing positive developments in Greece and France.
Hollande has repeatedly said the eurozone crisis, which has at times threatened the very existence of the 17-country currency union, was past.
Merkel also called for better supervision of the financial markets, stressing: “The world has still not sufficiently learnt the lessons of the devastating financial crisis of 2008.”
“Never again should such a lack of responsibility assert itself as before. In the social market economy, the state is the guardian of order and people have to be able to have confidence in that,” the chancellor said.
Contract chipmaker United Microelectronics Corp (UMC, 聯電) yesterday said it has signed a memorandum of understanding (MOU) with Polar Semiconductor LLC to collaborate on the production of 8-inch wafers in the US. The collaboration aims to strengthen 8-inch wafer manufacturing in the US amid Washington’s efforts to increase onshore manufacturing of semiconductors, contribute to supply chain resilience against shifting geopolitical dynamics, and ensure a secure domestic supply of power semiconductors critical to automotive, electric grids, robotic manufacturing and data centers, the companies said in a joint statement. Under the MOU, Polar and UMC will identify devices for Polar to manufacture at
TECH TITANS: Amazon’s latest chip joins Google in competing for the 90 percent market share held by Nvidia, which claims it is ‘a generation ahead of the industry’ Amazon Web Services (AWS) on Tuesday launched its in-house-built Trainium3 artificial intelligence (AI) chip, marking a significant push to compete with Nvidia Corp in the lucrative market for AI computing power. The move intensifies competition in the AI chip market, where Nvidia dominates with an estimated 80 to 90 percent market share for products used in training large language models that power the likes of ChatGPT. Google last week caused tremors in the industry when it was reported that Facebook-parent Meta Platforms Inc would employ Google AI chips in data centers, signaling new competition for Nvidia. This followed the release last month of
TARIFF TALKS: The US secretary of commerce is eyeing more than US$300 billion in investments and said Taiwan would train US workers, but Taipei has denied the latter US Secretary of Commerce Howard Lutnick said the US is expecting a large investment pledge from Taiwan in trade talks, while President William Lai (賴清德) listed areas that need improvement in order for projects to be completed. “We’re in the midst of discussions,” Lutnick said on Wednesday. “But the fact is, this administration’s goal is to bring semiconductor manufacturing to America.” Lai on Wednesday said Taiwan is supportive of US President Donald Trump’s goal of reindustrializing the US, including efforts to ramp up semiconductor production. Such a goal would require the US to reduce its reliance on Taiwan as a key source
Foxconn Technology Group (富士康科技集團) and Luxshare Precision Industry Co (立訊精密) plan to add millions of gaming devices to Vietnam’s annual output, according to documents they submitted to local authorities, reinforcing the country’s role in the global supply of game consoles. Vietnam assembles a variety of electronic products destined for foreign markets, including smartphones, computers and tablets. Information on its production of consoles is not public, but Foxconn EV Energy & Component (Vietnam) Co, a subsidiary of the Taiwanese manufacturer, has capacity to produce up to 4 million gaming devices in a factory in Northern Vietnam, according to a company document from
RSS