The decline in industrial activity in Germany is impressive: How can it be explained? What does it herald?
There is currently a very significant decline in industrial activity in Germany. It may be due to: The automotive sector crisis; The loss of competitiveness; The decline in global trade; The resulting decline in industrial investment in Germany; The decline, more generally, in domestic demand for industrial products in Germany. Given the weight of industry in Germany, the nature of its productive specialisation and the decline in its industrial productivity that for the time being is dampening the effect on employment, the outlook is for a n enduring weakening of the German economy.