In reality, Germany rapidly suffers from poor cost competitiveness

It could be thought that given the high level of product sophistication, Germany can have higher labour costs than other euro-zone countries without this resulting in negative consequences for its economy. But in reality, each time German cost competitiveness has deteriorated, the country has been in trouble due to the decline in the size of industry and the slowdown in growth. This confirms that the sensitivity of demand for German products to prices is quite high, which casts doubt on the myth that level of sophistication of these products is very high .