The crisis in German industry

Since 2017, manufacturing production has fallen by 10% in Germany, while it has risen by 4% in the rest of the euro zone. So Germany has deindustrialised rapidly since 2017, which is consistent with the low level of corporate investment and the major direct investment outflows. This fall in German manufacturing production is the result of: The fall in German exports of industrial products, due to Germany’s loss of competitiveness; The attractiveness of the United States or Central European countries, which are more attractive than Germany; The relatively unsophisticated nature of German industry, which produces cars, intermediate goods and industrial capital goods.