Bloomberg: Destruction of the resilience of the German economy is dangerous for the EU

Photo: © REUTERS/Lisi Niesner

Photo: © REUTERS/Lisi Niesner

Germany has for decades been the economic engine of Europe, thanks to which she managed to get out of “one crisis after another.” Now the stability of the German economy has begun to crumble, which is dangerous for the entire region, reported at Bloomberg.

“We were naive because it seemed that everything was in order,” BASF CEO Martin Brudermüller said, pointing out that “the problems in Germany are piling up.”

The publication noted that in the past, Germany has successfully coped with the problems, but now the question is whether the authorities will be able to adhere to a strategy to overcome the crisis. In January, German Chancellor Olaf Scholz reported that the country had avoided a deep recession despite the energy crisis.

At the same time, on May 25, the Federal Statistical Office of the country reported a decrease in Germany’s GDP in the first quarter of this year by 0.3 percent compared to the previous three months. The decrease was revealed following the results of the second quarter in a row (in October-December, GDP decreased by 0.5%), which means a technical recession. In addition, it was reported that industrial orders over the past month fell by 10% – this is the worst indicator.

Bloomberg stressed that experts predict the German economy will lag behind other EU countries “for many years.” According to the forecast of the International Monetary Fund, in 2023 Germany’s GDP growth will be the slowest among the G7 countries. At the same time, on the eve of Scholz, he said that he was optimistic, and assessed the prospects for the economy as very good.

Source: Ren

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