FRANCE - For decades after WWII, Germany became the industrial engine of Europe. It remained that way until two years ago. Then, its economy slumped and, after that, went dormant.
Once by far the most vibrant of any inside Europe, it peaked in the third quarter of 2022 with an inflation-adjusted output of $954 billion for the three-month period. "You have an economy in Germany that is sick," says Elias Haddad, a senior markets strategist at Brown Brother Harriman in London.
Two major economic issues are the problem. First was Germany's long-term reliance on cheap energy (oil and natural gas) from Russia, which once fueled its industrial heartland. When the Russians invaded Ukraine and the West sanctioned imports of Russian energy, little was left in Germany's energy structure. Read more here.
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