Europe's 'economic locomotive' faces recession
The Daily Telegraph said that a myriad of problems and low investment have led to the stagnation of the German economy. Germany has not had time to adapt to a rapidly changing world.
According to RT on August 28, the Daily Telegraph (UK) commented that once the center and economic "locomotive" of Europe, Germany is falling into a more difficult financial situation than ever. In the first quarter of 2024, the country narrowly avoided recession with GDP growth of only 0.2%. However, in the second quarter, growth began to decline again.
The Daily Telegraph says that among the reasons for this stagnation are bureaucratic delays, aging infrastructure, anti-construction protests, a shrinking workforce, an overly generous welfare system and an ageing population. However, the main culprit is low levels of investment in business and housing, as traditional industry accounts for the bulk of Germany’s GDP.
The forced switch to electric cars will only make matters worse for Germany, which has long been a leader in car production. Mid-sized, family-owned businesses that rely on the internal combustion engine industry could now face closure.
In addition, according to the Daily Telegraph, the country is too dependent on cheap energy supplies from Russia, which have been depleted since the outbreak of the conflict in Ukraine. At the same time, Berlin continues to “shoot itself in the foot” by closing its remaining operating nuclear power plants.
Germany is struggling to adapt to a rapidly changing world and may be falling behind its neighbours. Behind the facade of prosperity, there are many hidden problems in German cities that are not yet fully understood.
