Rhine's water level decreases the downward risk of German economy intensified

Xinhua News Agency, Beijing, August 12th. German government officials said on the 10th that the water level of the Rhine may fall to a very low level in the next few days. This makes companies depending on the transportation of coal, gasoline and other goods in water, have to limit production capacity, increasing the risk of downside in Germany.

Water transportation

The Associated Press reported that the weeks of drought for several weeks have shallow several major European water channels. The decline in the water level of the Rhine has caused many German factories and power plants to "headaches".

This is the Rhine shot in Dusseldorf, Germany on July 26. Xinhua News Agency (Photo by Urchi Hofngger)

According to data from the British Kaitou International Macroeconomic Consulting Company, Germany rely more on inland waterway transportation than other European countries.

The German Ministry of Communications spokesman Tim Alexands said that the water level in the Rhine in the river in Kobu, Pafa, Pafa, Rhine is very low.

This is the Rhine shot in Dusseldorf, Germany on July 26. Xinhua News Agency (Photo by Urchi Hofngger)

However, the relevant departments predict that the water level in the Kobu River section may fall to less than 40 cm in the early morning of the 12th, and it will continue to decline on weekends.

Kobu Town is located between Kobrenz and Mainz. The nearby river section is the middle of the Rhine. The lowest water level in this river section was 25 cm, which was generated in October 2018. At that time, many large ships were difficult to pass safely.

The owner of the shipping company, Roberto Supunzi, told AFP that because the water level of the river is at a low level, the fleet's capacity has been limited. "".

Economic pressure

The enterprises operated by Splenqi transported raw materials for many factories on the Rhine. He said that once the freight ship is limited or difficult to transport raw materials, the German industry will face threats.

About 4%of German goods are transported through water. As the EU's sanctions against Russia, Russia reduced the supply of Germany, the German government began to use sealed coal power capacity to make up for the energy gap. As a large arteries for coal transportation, the Rhein Rhine is of more important significance.

On July 26, in Dussertor, Germany, people were resting on the Rhine River. Xinhua News Agency (Photo by Urchi Hofngger)

Germany's Uunop company said that the low water level of the Rhine may lead to the unable to operate normally after September in September. In a statement, Germany Baden-Fotenburg Electric Power Company said that fuel transportation is restricted, the drop in the water level of the river has pushed up the cost of transportation, and land transportation is tight.

From the perspective of people in the energy industry, the decline in freight capacity of the Rhine has increased the risk of supply chain and shortage of supplies. Agence France -Presse reported that gas and diesel shortages in some places in southern Germany have appeared.

On March 18, a man cheered for a car at a gas station in Frankfurt, Germany. Xinhua News Agency (Photo by Omando Barbani)

According to data from the German Bank Research Department, in 2018, the water level of the Kaobu River section of the Rhine was reduced to a historical low, which led to a decrease in German GDP (GDP) by 0.2%.

Mark Shatenberg, an economist of Deutsche Bank Research Department, said: "This time the low water level appeared earlier ... If this situation (compared to 2018) lasts longer, economic losses will be more serious."

Kaitou International Macroeconomic Consulting Co., Ltd. expects that economic growth in Germany will slow down in the third quarter of this year, and the economy in the fourth quarter may shrink. The chief European economist Andrew Kenningham, the chief European economist of this consulting agency, said: "The reduction of the Rhine's water level makes the economic recession more likely." (Bao Xuelin)

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