The German economy is facing a bleak outlook, with forecasts predicting economic contraction, stagnation, and a structural crisis. Research institutes have downgraded growth forecasts for Germany, citing low productivity, weak manufacturing, and a lack of investment.
The construction and industrial sectors are shrinking, and the economy is burdened by budget cuts and a deficit. The energy crisis, digitalization, demographic changes, the COVID-19 pandemic, and China's changing role in the global economy are putting pressure on established business models.
The auto industry is particularly affected, with late responses to electric mobility and the challenge of producing both combustion and electric vehicles. The foreign trade outlook is also worrying, with declining exports and a weak economic recovery.
The current economic situation is causing concerns about job security and income, leading to increased savings and a pessimistic consumer sentiment. The German middle class is dissatisfied with the economic climate, and the business climate has worsened.
The lack of reliable decisions in economic policy and the toxic asylum debate are exacerbating the problems. Experts urge the need for more investment, adaptation to structural changes, and a focus on attracting skilled workers.
