L’economia tedesca si contrae per il secondo anno consecutivo
https://www.ft.com/content/1c377688-5ddf-4e31-95d9-15de1e5df2af
di LogicalDinner
L’economia tedesca si contrae per il secondo anno consecutivo
https://www.ft.com/content/1c377688-5ddf-4e31-95d9-15de1e5df2af
di LogicalDinner
8 commenti
>The Federal Statistics Office said on Wednesday that Europe’s largest economy contracted by 0.2 per cent last year, after shrinking by 0.3 per cent in 2023. Economists had expected a decline of 0.2 per cent
Atleast the shrinking is slowing….
The german economy shrinked and they even overcame japan as the third largest economy
Merkel legacy. Waiting for sequel of her book.
Well Germany got hit by a lot of bigger unfavourable events, mainly:
• Germany has a very export heavy industry and [chinese economy slowed down](https://www.bbc.com/news/articles/crr54x00857o) in the last few years (largest trading partner back then), they somewhat compensated this in the meantime as the [US became the largest trading partner of Germany](https://www.gtai.de/en/invest/business-location-germany/business-climate/us-is-germany-s-leading-trade-partner-in-2024-1809964)
• The [chinese EV boom](https://www.euronews.com/business/2025/01/13/china-sees-a-boom-in-ev-sales-while-petrol-filled-cars-tank) and lack therefore in western countries is a [big hit on the huge german car manufacturing business](https://www.reuters.com/business/autos-transportation/bmw-group-annual-sales-fall-weak-demand-china-germany-2025-01-13/)
• Generally, all of the world had to fight the inflation spike, which again is a hit on Germany’s heavy export industry
• Price shock on the energy markets which hit the very large heavy industries. Prices reduced drastically from the peak but depending on the sector they are still far higher than pre-crisis levels
• Still fighting spillover effects from COVID, but this affects all countries
Therefore, things might go into the right direction again – especially as energy prices get down, but another big problem might be Trump tariffs (again hitting Germany’s exports).
If Trump imposes sanctions, the situation will get much worse.
The article talks about this .
Who could have known that a debt brake and consequently lower public investment would have detrimental effects on the economy. /s
We have been bankrupt for a long time, but we are being fleeced by taxes.
I have background in both the UK and Germany, just to give an update on the UK as well: it’s been overtaken by Italy and the EU as a whole in GNI per capita PPP
https://data.worldbank.org/indicator/NY.GNP.PCAP.PP.CD?locations=EU-IT-GB&view=chart