Germany is the largest economy in Europe and it has been very pivotal to the success of the European Union. However, the German economic situation is taking a new shape as data being released is showing a looming economic collapse. The economy has been flopping for months and the manufacturing sector has been declining steadily and and economic collapse might be around the corner. According to the economists, the German economy is collapsing and the current instability could lead to the eurorozone collapse.
The GDP has contracted and this has raised a concern among many economists because the country might be headed to an economic disaster. The fate of the German automobile industry remains unknown and if the trend continues, the whole auto industry will be crippled to an extent where it will be impossible to reverse the situation.
The demographic changes in Germany might deny the country a significant amount of manpower and this will just add more problems to the economy. We have too many immigrants who are using a lot of resources without any input to the economy. The country also has a large number of elderly people compared to the young energetic segment of the population who can provide labor to the economy.
Right now the European union has a lot of challenges especially after the exit of Britain from the union and this is threatening the German manufacturing sector whose main market is the members of the European union. There have been many economic challenges and low interest rates introduced by the European central banks have not solved the financial problems. The UK was a very key pillar in the EU and their exit has raised the anti-European union sentiment and this raises the risk that more members will withdraw themselves and this can crumble the EU where Germany has a very big market. This is a big threat to the stability of the German economy and as per now many companies have a pessimistic outlook on the economy. This raises the chances of a economic collapse for the first time since 2013 because we have more indicators suggesting that there might be an economic meltdown in Germany.
The banking system in Germany is in chaos, consumer consumption is dropping and with every passing week, things are getting worse. Germany is known as the economic powerhouse of Europe and the biggest locomotive producer in Europe but this might not be the case if the economic slowdown continues. The world’s fourth largest economy is on the verge of economic collapse and the consequences will be felt even outside its borders. The whole eurozone is is going to collapse and I don’t need to tell you what will happen then…. The best thing you can do is to prepare!
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