Germany in economic doldrums amid Trump tariff war, China competition

Published On Nov 23, 2024, 9:00 AM

Germany's economy, once the strongest in Europe, has been struggling significantly in recent years, primarily due to its dependence on affordable energy from Russia, which has vanished because of geopolitical tensions. This has led to a downturn in its manufacturing sector and stifled exports, especially in competition with China. Additionally, the government faces fiscal challenges due to strict deficit spending limits, leading to slow growth. Political instability also looms as the government undergoes leadership changes and prepares for upcoming elections. Despite these challenges, the stock market in Germany has shown a surprising 13% increase this year, indicating some resilient investor sentiment.