The crisis of the German economy has been going on for two years and the industrial decline has accelerated again, writes NIUS. The latest surveys signal a recession.
The German economy has never been in such a bad state for such a long time and German manufacturers are steadily losing global market share.
The German economy has been in crisis for two years now. While positive growth figures are being recorded worldwide, the productivity of the German economy is shrinking and the industrial recession is accelerating again, NIUS reports. Economic research institutes had predicted Germany would grow sharply in the second half of 2024. However, it is already clear that things are no better and the economy is in a deep structural crisis.
The purchasing managers’ index for German industry was published this week. The value fell to 42.6. Values below 50 indicate contraction. Values below 45 clearly signal recession.
German industry has been contracting month after month for more than two years, and recently the rate of decline has accelerated again. Never before has German industry been in such bad shape for so long. Order intake continues to fall and is accelerating the decline in the order book. German automotive and mechanical engineering companies in particular are steadily losing global market share.
Business sentiment has deteriorated significantly and companies have become less satisfied with their current operations. Scepticism about the coming months has increased, which also points to a continuation of the crisis. The business climate in the manufacturing sector deteriorated particularly sharply, but all sectors of the economy – manufacturing, services, retail, construction and others – were affected.
The German economy is not just facing temporary, isolated weaknesses, but must overcome far-reaching structural problems in order to get back on a sustainable growth path. Therefore, we should not be surprised if research institutes soon revise their growth forecasts for the German economy downwards again.
