Concerns about China’s slowdown are reverberating globally, as was true in 2015-16, although the incidence is somewhat different. While Germany had appeared to be weighed down primarily by transitory factors late last year, some of the weakness in industrial production now appears likely to be more persistent, in part reflecting spillovers from China.
That is the task to be performed by commercial banks and all these loans that have been granted under much more favourable terms than those prevailing in the market as regards interest rates and maturity, represent a real trigger for the development of small and medium size enterprises which are normally a driving force behind development of any economy and a means for resolving employment issues.