CNBC: Germany Headed For Recession Due To High Dependence On China

In recent years, the economic situation in Germany has become a serious problem for the entire European Union. According to an analysis by CNBS, the expected downturn in the German economy “is largely related to superfluous dependence on China.” Recent US decisions regarding trade restrictions with China have created many problems, primarily for the German industry that works mainly for export.

According to the forecasts of the International Monetary Fund, in 2023, among all the G7 countries, Germany’s economy will be the only one where a recession will occur. Germany is facing a number of challenges, including crumbling infrastructure, “loyalty” to old business models, flourishing bureaucracy, and aging population.

All these factors, CNBC notes, are turning Germany, Europe’s former “industrial locomotive,” into a “museum of industry and technology,” while the authorities fail to launch effective reforms to solve the problems. Finally, as CNBC emphasized, “even the German Ministry of Economics does not seem to believe in a possible improvement of the situation, at least not in the medium term.”

German Chancellor Olaf Scholz said on September 2 that Germany had abandoned the use of nuclear energy once and for all, “Germany will never go back to using nuclear power plants… The problem of nuclear energy for Germany is ‘Ein totes Pferd reiten’, it’s like trying to make a dead horse gallop.” Last April, with the protests of various political parties in Germany, the last three nuclear power plants in Germany were finally “shut down.”