Germany's economy is heading for lulls: stagnation instead of upswing!

Germany's economy is heading for lulls: stagnation instead of upswing!

The alarm bells ring for the German economy! In the third quarter, the gross domestic product (GDP) increased by 0.2 percent, instead of the feared 0.1 percent decline, but the joy only lasted! Because the revised balance sheet for the second quarter reveals an even more dramatic decline of 0.3 percent, which makes the Situation appear dark. In comparison to the previous year, GDP even remains slightly, which confirms the weak performance in the historical and international context.

What's going on? Germany's economy has almost stagnated in the past five years! GDP has hardly exceeded the 2019 level, and in the shadow of the corona -related turbulence, it is now lagging behind the growth figures of the other European countries. While GDP rose by over 5 percent in the middle of the year in other euros, the increase in France was 0.4 percent and 0.8 percent in Spain-a real growth depression for Germany!

structural challenges

The pressure on economic activity remains enormous! Both temporary and deeply rooted structural problems put a significant impact on the situation. The decongestant effect of the restrictive monetary policy could initiate moderate relaxation, but uncertainty holds back investors and consumers. A worrying sign is the burgeoning structural difficulties that question the competitiveness of German companies. Significant industrial production and weak export numbers are alarming indicators and do not give anything good for the future economic development!

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