Wirtschaftsleid

The German economy faces deep structural challenges, with GDP contracting 0.2% in 2024 after a 0.3% drop in 2023. Weak EV competitiveness in the car industry, flawed energy policy, reliance on a slowing China, underinvestment in infrastructure and education, an aging population, and high administrative burdens are dragging growth. Despite the DAX rising 24% over the last 12 months, driven by companies like SAP and Siemens Energy, the equity market doesn’t reflect the broader economy’s struggles. The outlook for 2025 is bleak, with the Bundesbank forecasting just 0.2% growth, and the threat of tariffs from U.S. President-elect Trump adding further uncertainty. Germany could suspend the Schuldenbremse, reduce administrative burdens, and leverage its fiscal space to finance much-needed investments in infrastructure, education, and green energy.