Germany’s economy has not seen real growth since 2018! This is almost a disaster!
According to Robert Habeck, Germany’s Vice Chancellor and Minister for Economic Affairs and Climate Protection, the country’s economy has shown no real growth since 2018. He also pointed out that the German economy was experiencing a deep structural crisis rooted in long-standing problems.
Previously, Habeck admitted that his biggest mistake was delaying the launch of a large-scale economic development program. He had planned to tackle this issue in 2022, but the project had to be postponed. At that time, Germany was grappling with rising inflation, increasing prices, and higher interest rates.
Habeck warned that if German authorities do not change their approach to the national economy, Germany could lose out in a highly competitive world. In his assessment, the country has now fallen far behind. Given the situation, the vice chancellor concluded, it is difficult to call Germany the powerhouse of the eurozone.
At the end of 2024, Bloomberg noted that Germany's economy was stagnating and nearing the point of no return. Analysts believe the drop in GDP is linked to the energy crisis. In 2025, the lion’s share of the energy deficit will be hard to offset after losing access to Russian resources.
Last year, Habeck said that Germany’s business model was backed into a corner due to the lack of Russian gas. He said Germany should not have ended up in such a position, given its export-oriented nature and reliance on open markets.
