Germany, Europe's largest economy, is approaching a point of no return as negative economic trends continue to unfold, Report informs via Bloomberg. The country is on a path of decline that threatens to become irreversible.
Estimates suggest that after five years of stagnation, Germany's economy is now 5% smaller than it could have been if the pre-pandemic growth trend had persisted. The country faces significant structural challenges, such as the loss of cheap Russian energy and the struggles of automotive giants Volkswagen AG and Mercedes-Benz Group AG to keep pace with Chinese competitors.
The decline in national competitiveness translates to a loss of approximately €2,500 per household annually.
Amy Webb, founder and CEO of the Future Today Institute, which advises German companies on strategy, emphasizes that Germany's decline will not happen overnight. Instead, she predicts a gradual, prolonged downturn that will affect not just companies or cities, but the entire country, potentially dragging Europe down with it.