Daily Management Review

Bloomberg: Germany will lose its status of "industrial superpower"


According to Bloomberg, Germany's economy—which is regarded as the biggest in the eurozone—has been in decline since 2017. More recently, this drop has accelerated because of the country's decreased competitiveness. Germany might not be a "industrial superpower" for long, the newspaper writes.

Trine Juel
Trine Juel
Preliminary data from the Destatis office indicates that Germany's GDP decreased by 0.3% in the fourth quarter of 2023 compared to the third. In general, 2023 saw a 1.5% decrease in manufacturing output compared to 2022, a 10.2% decrease in energy production, and a 10.2% decline in the chemical industry.

According to Bloomberg, the downturn in certain areas is gradual and manifests itself in lower investment levels, while in others, it takes the form of shifting production lines or employee layoffs. Production may be halted in severe circumstances.

The newspaper notes that the industrial manufacturing base in Germany has "collapsed like dominoes." China is reducing imports from Germany, and the US is beginning to compete with the EU. The disruption of inexpensive gas supply from Russia has left heavy industries in dire need.

The chemical sector in Germany has been severely impacted by the absence of inexpensive Russian gas. Due of the unpredictable scheduling of the sector, nearly one in ten businesses wants to stop production.

source: bloomberg.com