While other economies are growing, Germany’s is shrinking. Politicians, collective bargaining partners and central bankers can do a lot to improve the situation.
For those who had recently hoped, autumn brings the bitter news: 2023 will be an economic year of displeasure for the Germans. The corona pandemic and the energy shock caused by the war in Ukraine will be followed by lower economic output this year. The German gross domestic product is expected to shrink by a good half a percent, while the other major economies are growing. This discrepancy is a wake-up call to politicians, collective bargaining partners and central bankers to improve the situation – instead of possibly making it worse.