Germany's economy in the crisis: Where is the growth?

Germany's economy in the crisis: Where is the growth?

The German economy is stagnated and falls behind many other industrialized nations. The latest data show that Germany has hardly grown in recent years and has been significantly behind in labor productivity. Despite the Corona crisis, some countries are experiencing economic blooming, while Germany hardly makes any progress. The causes of this economic malaise are complex: lack of digitization, declines in industrial production as well as falling private and public investments are just a few of the factors mentioned. The traffic light coalition faces major challenges to fix these grievances, reports the Zeit .

growth potential unused

The situation could soon come to an end, McKinsey experts believe. In their study on the “growth turnaround” it shows that a massive investment spurt and a focus on promising areas such as digitization and artificial intelligence Germany could significantly increase its growth. The gross domestic product could be doubled to up to 24 trillion euros by 2035, an absolute bright spot for the battered economy. However, almost 250 billion euros net flow from Germany annually, which indicates that investments in Germany are less attractive than abroad. The returns in the United States, for example, exceed the German returns by 30 percent, such as the management consultancy McKinsey notes.

In order to achieve the desired turnaround, investments of 330 billion euros per year are necessary to create the necessary incentives for companies. The restructuring of the economy towards dynamic future fields could help increase competitiveness and bring Germany back to the international stage. According to the board, this change will only succeed if politics is determined and creates suitable framework conditions, so that Germany will again become an attractive location for investments.