Starmer mocked for economy booster trip to Berlin as Germany hit by crisis ‘Clown!

Sir Keir Starmer confirms his stance is 'no to the single market'

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The Labour leader and David Lammy, shadow foreign secretary, flew to Germany to meet with Chancellor Olaf Scholz on Thursday. Sir Keir, meeting with the Chancellor, is expected to say Labour is ready to form a government and has a plan to ensure that Britain and Germany can work together to help boost economic growth.

Deutsche Bank analysts said Germany to contract in the second half of 2022

However, Sir Keir’s trip comes as the German economy is moving into a recession, according to economists at Deutsche Bank.

Analysts led by Stefan Schneider said in a report to clients declining natural gas supplies, a downturn in the US and other headwinds will cause Germany to contract in the second half of 2022.

The analysts also predicted the country’s economy will retract by one percent in 2023.

The economists added: “It seems reasonable to assume that Russia will continue to look for ways to disrupt economic activity in Europe in retaliation for Western sanctions and financial and military support for Ukraine.”

Continuing, the economists said “this might not necessarily mean a complete shutoff,” but “the impact on industrial output and economic uncertainty will almost certainly push the German economy into recession in the second half of 2022”.

Deutsche Bank analysts said Germany to contract in the second half of 2022

However, Sir Keir’s trip comes as the German economy is moving into a recession, according to economists at Deutsche Bank.

Analysts led by Stefan Schneider said in a report to clients declining natural gas supplies, a downturn in the US and other headwinds will cause Germany to contract in the second half of 2022.

The analysts also predicted the country’s economy will retract by one percent in 2023.

The economists added: “It seems reasonable to assume that Russia will continue to look for ways to disrupt economic activity in Europe in retaliation for Western sanctions and financial and military support for Ukraine.”

Continuing, the economists said “this might not necessarily mean a complete shutoff,” but “the impact on industrial output and economic uncertainty will almost certainly push the German economy into recession in the second half of 2022”.

Christian Calgie, senior reporter at Guido Fawkes, mocked the Labour leader’s trip by posting a picture of an article about Germany’s recession fears.

He added the caption: “Starmer: I’m here in Germany talking with Chancellor Scholz about how we grow our economy.”

Twitter user @trickytree2 joined in and said: “Why is this clown strutting around like he is the PM …”

User @DufferRoy also said: “Have I got this right? Our economy grew by 0.5 percent and Germany is on the brink of recession but Sir Keir wants their advice? On what?”

According to the Office of National Statistics (ONS) in its report published on Wednesday, UK GDP rose by 0.5 percent in May.

UK GDP growth in the 12 months to May 2022 was also reported to be a healthy 3.5 percent.

Eurostat said on May 17 the EU’s GDP rose by 0.4 percent in the first quarter of 2022, while the Eurozone’s GDP rose by 0.3 percent.

Compared with the same quarter of 2021, seasonally adjusted GDP increased by 5.1 percent in the Eurozone’s and by 5.2 percent in the EU.

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The ONS added that “monthly GDP is now estimated to be 1.7 percent above its pre-coronavirus (COVID-19) pandemic levels” in the UK.

In contrast, on June 29 the EU’s official statistics agency Eurostat said that “[EU] GDP remains 0.8 percent below the 2019 pre-COVID level”.

In their Spring 2022 Economic Forecast, the European Commission pointed the blame at Russia’s invasion of Ukraine for their economic woes.

In Germany on Thursday, Sir Keir and Mr Lammy met with politicians and businessmen.

The pair arrived at the German Chancellery at around noon to meet Wolfgang Schmidt, Germany’s federal minister for special affairs, head of the chancellery and commissioner for the Federal Intelligence Service.

During their visit, they are also aiming to find out what Britain can learn from the “best economic models” around the world.

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