German Industry Is Paralyzed
(MENAFN- AzerNews)
The lack of orders and falling exports put Germany at the bottom
of the list in terms of growth rates, Azernews
reports.
Germany, with its energy-intensive industry and shortage of raw
materials, has been particularly affected by the rapid rise in
energy prices. Large corporations such as BASF are closing
factories because management no longer believes it can efficiently
produce essential chemicals. There is a trend of
deindustrialization.
The volume of orders from German machine-building and
engineering companies decreased by 12 percent in the first half of
2024, according to the industry association VDMA. year to year in
real terms. Orders from Germany itself fell especially sharply - by
18 percent. Orders from foreign companies fell by 9 percent.
Metallurgical corporations are also suffering, as demand for their
products is also falling.
According to Arne Rautenberg, a representative of the Union
Investment stock company, industrial production has been falling
since 2017. Every second company complains not only about high
energy prices but also about the lack of qualified labor and high
bureaucratic obstacles.
Political setbacks, on the one hand, and economic changes, on
the other, have pushed the German economy into the background, says
Eric Heymann from the Deutsche Bank think tank.
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