Germany's Economic Concerns

After a strong start to the 21st century, Germany's economy has tanked over the past six-to-seven years. Germany's economy has been battered by the Covid-19 pandemic, weak demand in key European export markets and global trade uncertainty. More importantly, China has made major inroads into industries that have been key to the success of the German economy in the past, such as the automotive industry.

Worse, there is little likelihood of the German economy gaining much momentum over the next few years. While higher levels of government spending will provide a boost for the German economy, consumer spending at home is forecast to remain weak, while competition for export markets is expected to worsen.