German machinery industry says Russia sanctions hinder salesJuly 31, 2014 - 16:18 AMT PanARMENIAN.Net - A group representing Germany's machinery industry revised its output forecast sharply lower on Thursday, July 31, pointing to the effects of political tension with Russia and the wider uncertainty it has caused, the Associated Press reports. The VDMA group said it now expects production of machinery to grow by about 1 percent this year, rather than the 3 percent it predicted in October. "The conflict with Russia is not just leaving tracks in bilateral trade — it is generally hindering demand in important sales markets for our industry," VDMA chief economist Ralph Wiechers said in a statement. "Economic sentiment has darkened in many countries; as a result, orders cannot develop the momentum that would be needed" for 3 percent growth this year, he added, though the industry can still hope to achieve a production record of 199 billion euros ($267 billion). "We know that we could suffer economically ourselves — we know that our trade with Russia is not overly large, but it does have some significance," Vice Chancellor Sigmar Gabriel, who is also Germany's economy minister, said on Wednesday. Germany has Europe's biggest economy. Russia was only Germany's 11th-biggest trading partner last year, well behind the top four of France, the Netherlands, China and the U.S. German exports totaled 36.1 billion euros, 3.3 percent of the country's total exports, with machinery and vehicles among the main goods sold. As for the potential damage, Gernot Erler, the government's coordinator for cooperation with Russia, told n-tv television that some estimates see sales to Russia dropping by 4 billion to 6 billion euros. The German economy is generally in robust shape. Official figures Thursday showed the country's unadjusted jobless rate edging up to 6.6 percent in July from 6.5 percent the previous month for purely seasonal reasons, while the underlying trend remained positive. Photo: dpa Related links: Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | European Parliament to discuss repression in Azerbaijan The European Parliament will discuss repression of civil society in Azerbaijan on April 24 PACE wants concessions from Azerbaijan to accept Baku back A PACE co-rapporteur said that Azerbaijani authorities must make certain concessions so that the country can return to PACE. Cyprus parliament honors Armenian genocide victims Acting House President Zacharias Koulias noted that April 24 marks the “black anniversary” of the Armenian genocide. Armenia PM, France envoy discuss regional matters Issues related to the consistent development of Armenia-France cooperation were discussed. |