Germany's economy before the change: the shimmer on the horizon!

Germany's economy before the change: the shimmer on the horizon!

Deutschland - The economic situation in Germany has turned out to be anything but rosy in the past few months. According to the latest reports from Boersianer , the industry of sheet metal formation, a central area in the processing trade, is in a challenging location. The managing director of the association of sheet metal formation, Bernhard Jacobs, reports of a remarkable decline in sales of 12.2 percent within a year, which led to over 10 percent of jobs in this sector. A significant signal is also the decline of 4 percent of the companies that could no longer withstand pressure.

The production performance is at the lowest level of the past ten years, but Jacobs still sees a little glimmer of hope: "One shimmer - nothing more." While the black-red government under Chancellor Friedrich Merz has been in office for around 100 days and has focused on topics such as migration and business, the latest economic indicators show that there is still a lot of work ahead of us.

stagnation and skepticism

Federal Chancellor Merz has formulated optimistic goals, including medium -term economic growth of two percent, but skepticism among economists is great. Tagesschau reports of an increasing number of orders in industry, but the economic situation remains stagnating. Germany is considered the bottom of the economic growth among the states developed.

High energy prices, a stricter competition and the challenges of the run in industry are just a few of the problems that burden the country. The OECD draws a dark picture: for 2025 the weakest economic growth is predicted among the developed countries. The prediction of leading economic research institutes, which reduced its growth expectations for 2025 from 0.8 percent to only 0.1 percent of gross domestic product (GDP).

weak domestic demand and external influences

The current situation is not just an internal problem. Geopolitical tensions, such as the war in Ukraine, and US customs policy under President Donald Trump also put a strain on the German economy. In combination with a weak internal demand and reserved investments, there is a tense atmosphere. Statista shows that Germany has slipped into recession in the past two years, and many expect this to stay that way in 2024. The forecast for 2024 shows a GDP sink of 0.2 percent, which represents the second decline in a row.

In the middle of all of these challenges, relief for companies remains an important goal of the government. Finance Minister Lars Klingbeil plans tax reliefs that are intended to bring annual relief of over 10 billion euros. According to Jacobs, a reduction in bureaucracy is essential to relieve the companies and promote growth. While the government is working on these measures, it remains to be seen whether the hoped -for positive effects will soon become visible.