Germany faces economic doldrums amidst Trump tax war, China competition
Date
11/24/2024 2:10:35 AM
(MENAFN) For decades following WWII, Germany became the industrial engine of Europe. It stayed that way until couple of years ago. Then, its Economy fell and, following that, became inactive.
Once by far the most vibrant of any inside Europe, it peaked in the third quarter of 2022 with an inflation-adjusted output of USD954 billion for the three-month period. "You have an economy in Germany that is sick," states Elias Haddad, a high-ranking markets expert at Brown Brother Harriman in London.
Couple main economic matters are the problem. First was Germany's long-term dependence on low cost energy (oil and natural gas) from Russia, which once fueled its manufacturing heartland. When the Russians attacked Ukraine and the West sanctioned imports of Russian energy, few was remaining in Germany's energy structure.
"It had already shut down many of its nuclear power stations and then closed the rest during 2022 and 2023," states Daniel Lacalle, head economist at Madrid-based investment firm Tressis. "A lot of times we hear about Germany as a country that is very logical and organized, but this was done in the middle of a full-swing energy crisis."
The outcome of the shortage of low cost energy has upset the industrial field, which has been in shrinkage since mid-2022, based on the HCOB manufacturing PMI, which measures the field’s health.
MENAFN24112024000045016755ID1108919242
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.