The greatest economy in Europe, Germany, is having difficulty expanding, suggesting that the nation, which has long been seen as the region’s engine of growth, is now acting as a brake on its prospects, according to Bloomberg
According to IMF predictions, Germany’s economy will be the only one of the G7 countries to contract, reverting to a dead weight position in terms of Europe’s growth potential.
According to Thomas Mayer, the founder of the Flossbach von Storch Research Institute and a longtime observer of Germany’s economy, the country is vying to be known as the “Sick Man of Europe.”
Manufacturers are suffering from the ongoing energy crisis, which is making matters worse for an industry already beset by productivity issues and a skills gap brought on by changing demographics.
Meanwhile, its ability to produce cars is threatened by increased worldwide competition in electric vehicles.
Further industry decline is being caused by these persistent issues, weak Chinese demand, and stricter monetary policies.
Although the economy has managed to avoid another quarterly dip, many experts already believe that this is only a transitory situation as Germany will experience a new recession in the second half of the year.
Citizens who are gravitating more and more toward the far-right AG, whose support according to a recent poll hit a record 22%, are already taking into account long-term growth possibilities.
