In Germany, Europe's largest economy, where the annual inflation rate has reached 6%
Being unemployed in Germany in the middle of the high tourist season in the south of Gran Canaria can draw attention to spending vacations. This is what you have to save on German taxes or the price of heating. But there are dark clouds on the horizon and these variables are beginning to be seen in the stock market: the Amadeus reservation system drops by 8,92%; and Aena, 8,77%, that is, the most used tourist reservation engine in the world and the winter income forecasts of the network that owns the Gran Canaria airport. In Germany, Europe's largest economy, where the annual inflation rate has reached 6%. Despite all this, unemployment is at 5,3%.
The eurozone's core inflation rate, which excludes potentially volatile items such as alcohol, energy, food and tobacco, also soared in November to an annual rate of 2,6% from 2%. This indicates that the general rate already has second round effects, through higher salaries, for example. However, the recently discovered omicron variant of the coronavirus has created some uncertainty about the global economic outlook and, as a result, central banks around the world are expected to refrain from announcing any major policy changes soon.
Unemployment in Germany is not an absurd thing. It is data that the experts at the FEHT of Las Palmas analyze with great caution. Unemployment in Germany extended its decline in November, as companies added staff to clear a backlog of orders: it fell by 34.000, beating economists' forecast for a drop of 25.000. That brought the unemployment rate to 5,3%.
Germany's labor market benefited from a surge in global demand following the end of widespread pandemic lockdowns. However, supply bottlenecks, also a result of stronger demand, have weighed on production and are driving much of the country's economic recovery into next year. More recently, risks to the economy have increased amid a rise in coronavirus infections and the reintroduction of some restrictions on activity, which could affect hiring in the services sector in the future.
Rising prices are also increasing pressure on German businesses, with a separate report on Monday showing inflation of 6% in November. European Central Bank officials are less than three weeks away from a crucial meeting to set the course for post-crisis monetary policy, where they will determine how much more stimulus to provide for the region's recovery without risking falling rates. higher inflation.