Germany's economy in the crisis: Record shrinkage expected by 2025!

Germany's economy in the crisis: Record shrinkage expected by 2025!

The economic situation in Germany worsens drastically and the alarm bells ring out loud! As Berlin Live , the gross domestic product (GDP) has only grown by 0.1 percent in the past five years. A worrying trend that continued in 2023 with a decline of 0.3 percent. For 2024, a decline of 0.1 percent is again predicted, and it seems that the descent of the German economy is far from over. The Federal Government's expert opinion shows that the production potential in 2024 will be five percent below the 2019 expectations. These shocking numbers indicate that Germany suffers not only from economic persons, but above all from structural problems.

Another damper for the economy is the results of a survey by the Institute of German Economy, which show that 63 percent of companies report a deterioration in business framework. The constant increase in costs for work, material and energy as well as the overwhelming bureaucracy inhibit growth. According to Destatis

The location is alarming: Of the 49 associations, only 16 expect production to increase the production by 2025, while the rest of it is either stagnated or even declines. The decline in business is also reflected in employment, with 25 industries that expect upcoming job cuts. It remains to be seen whether the next federal government will be able to create a sustainable economic perspective in order to counteract this downward trend and to lead the German economy out of the crisis.