The German Ministry of Economy announced today, Tuesday, that it is closely monitoring the situation in the Red Sea following the attacks carried out by Houthi militants. The German economy, which is struggling to achieve growth this year, relies heavily on trade, and these attacks could negatively impact Germany's trade outlook, as it is Europe's largest economy.
The ministry added that it is currently impossible to estimate the impact of the ongoing disturbances on the economy. However, it stated, "What is clear is that long-term interruptions to global trade will adversely affect supply chains and, consequently, the economy." The attacks, which are in response to the Israeli assault on the Gaza Strip, target a major supply line between Asia and Europe, leading to increased shipping costs, as companies seek alternative maritime routes, thus threatening the global economy.
