Germany’s mistakes will cost it dearly

The sharp deterioration that can already be seen in the situation of the German economy is linked to three serious “strategic errors” on Germany’s part: The country’s specialisation in bygone industries (intermediate goods, industrial capital goods, cars), which are already in visible decline; Deteriorating cost competitiveness, which is eroding Germany’s market shares and taking the country back to its situation in the early 2000s; Germany’s investment of its excess savings in the rest of the world outside the euro zone and not in the euro zone, weakening economic growth in the latter, which is Germany’s main market .