International
Germany is now in a decadence that seems unstoppable
he struggling German economic model remains stuck in stagnation. growth is now a thing of the past. The years when German industry was racking up records and trade surpluses are a historical memory. We see this graph presented by economist Sander Tordoir that clearly shows stagnation.
Previously, analysts had predicted a modest recovery for the German economy, but have now reduced their forecast to ~0.1 percent growth for the current year.
The gap from the pre-pandemic growth trend would then be a whopping ~7.5% by the end of 2024.
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Given the structural headwinds, the previous optimism the government displayed, which must necessarily suggest that things are going well, appears increasingly unwarranted and baseless.
Chinese competition, energy prices, overly tight fiscal policy, and the drag of decades of underinvestment make recovery unlikely in the absence of major policy changes. Yet the traffic light government fails to show any elasticity and ability to change policies that are failing
On the public finance side, debt-cutting targets are always being chased, when the country would need heavy investment in aging infrastructure.
In energy sim continues with the myth of decarbonization, which is producing non-productive investments.
Private and technology companies are now experiencing gradual decay. The clearest case is that of Volkswagen, whose sales in China are steadily declining because its products are no longer up to the international technological situation