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.

This article was written by Justin Low at www.forexlive.com.