Germany: Economy in decline?
With growth slowing and exports drying up, we ask if Europe’s perennial powerhouse is in trouble.
Almost 25 years after the fall of the Berlin Wall Germany still stands as the superpower of Europe. which is even more impressive if you consider the $2.3tn cost of absorbing East Germany, plus the rising costs of unemployment, growth and wages.
The irony is that Germany is willing to plough €100bn a year into its former East, but will not allow the rest of Europe to spend their way out of recession.
Germany’s economy contracted in the second quarter of this year, by 0.2 percent. The reason behind the contraction has to do with the stagnating Eurozone, geo-political tensions in Ukraine and the situation in Middle East forcing Berlin to slash its growth target for this year and next, expecting growth of 1.2 percent in 2014, down from 1.8 percent.
With growth slowing and exports drying up, is Europe’s perennial powerhouse in trouble? Will Germany avoid recession?
Al Jazeera’s Nick Spicer reports on the immediate future of Germany’s economy. And Marcel Fratzscher, the president of DIW Berlin, joins Counting the Cost to discuss stimulus vs austerity and Germany’s economic situation.
Dilma Rousseff: Back in power
The tightest election in Brazilian history split the country in half. President Dilma Rousseff has vowed to implement reforms as she reached out to nearly half the country that voted against her.
So what is next for Brazil? Are the people giving Lula’s economic revolution another chance in the form of his successor Dilma Rousseff? And what are the challenges facing Rousseff? Counting the Cost talks to Carlos Caicedo, a senior principal analyst for Latin America at IHS Country Risk.
China and Afghanistan: Future trading partners?
China is Afghanistan’s biggest business investor – thanks to a $3bn deal for the rights to a copper-rich area outside Kabul.
But there are no Chinese miners there; the promised roads and railways have not been started as security concerns have stalled the project.
In China, Afghan President Ashraf Ghani is hoping to revive this deal as Chinese investment in his country’s minerals is worth an estimated $1tn.
So, will President Ashraf Ghani close the deal? And what does this mean for the United States? From Kabul, Jennifer Glass looks at China’s investment in Afghanistan.
The dilemma of Mumbai’s airport
Mumbai has a population of 90,000 people and the expansion of the airport has brought it closer to the sprawling slum. Officials say this poses a growing security risk, while those living in the slum say they do not represent a security threat – although some agree it is a place where anything can happen.
The residents represent a large voting block and that is why politicians have not tried to make them move out in the past. However, aviation security experts say, that an increase in terror threats over the years has made this slum pose an increased risk.
Al Jazeera’s Faiz Jameel reports on this issue.