Germany has been Europe’s “economic engine” for decades, thanks to which it emerged “from one crisis after another”, but now the resilience of the German economy is collapsing, threatening the entire region, writes Bloomberg.
According to the agency, BASF chief executive officer Martin Brudermüller said that “the problems in Germany are piling up”, and a period of changes awaits the country ahead.
In the past, Berlin has successfully coped with the problems, but now the question is whether the government will be able to stick to a strategy to overcome the crisis, Bloomberg emphasizes. Chancellor Olaf Scholz said in January that Germany had managed to avoid a deep recession despite the energy crisis caused by military action in Ukraine and restrictions on Russia.
However, on Thursday, May 25, the country’s Federal Statistical Office reported that Germany’s GDP in the first quarter of this year fell by 0.3% compared to the previous three months. The decline was recorded for the second quarter in a row (in October-December, GDP decreased by 0.5%), which usually means a technical recession.
According to Bloomberg, experts predict the German economy will lag behind other European countries “for many years,” and the International Monetary Fund believes that this year German GDP growth will be the slowest among the G7 members. Nevertheless, Scholz is optimistic. “The outlook for the German economy is very good,” he told reporters the day before.
Source: Rosbalt
Mario Twitchell is an accomplished author and journalist, known for his insightful and thought-provoking writing on a wide range of topics including general and opinion. He currently works as a writer at 247 news agency, where he has established himself as a respected voice in the industry.
