The central bank adds that while that is a tough scenario for the economy, an outright decoupling from China would be much worse for Germany in any instance.
According to its simulations, real German GDP would be 0.7% lower in the first year of any economic crisis in China and just under 1% lower in the second year. This owes much to Germany's trade ties to China, which will see lower exports in general alongside weakening global demand.
