Financial expert warns of approaching recession: Industry is in the longest downturn since 2008. Energy prices and the global economy are weighing on the economy.

Financial expert warns of approaching recession: Industry is in the longest downturn since 2008. Energy prices and the global economy are weighing on the economy.

According to a report by www.n-tv.de,

High energy prices and a weak global economy have German industrial companies firmly in their stranglehold. In October, production fell for the fifth time in a row, meaning that German industry is in its longest negative streak since 2008. Economists do not expect a quick turnaround.

This development is alarming and casts a bleak light on the future of German industry. The 0.4 percent decline in industrial production in October suggests that a recession in Germany is becoming increasingly likely. Experts such as the economic expert at the German Chamber of Commerce and Industry (DIHK), Jupp Zenzen, emphasize that the energy-intensive industry as well as the construction industry are affected by this development.

The long-term weakness in industrial production could lead to gross domestic product shrinking in the final quarter of the year. With the renewed decline, some experts see the likelihood of a recession in the German economic sector increasing.

The export-dependent industry is particularly affected by this development, with mechanical engineering being hit particularly hard with a 6.3 percent drop in production. The automotive industry, on the other hand, recorded a growth of 0.7 percent, which shows that the situation is different in different sectors.

The increased energy costs as a result of Russia's war of aggression against Ukraine are putting a strain on both private households and industry. Current developments lead economists and financial experts to suspect that industrial production will continue to fall in the coming months, which could further worsen the economic situation. It is urgent that policymakers take action to stabilize the German economy and mitigate the impact of global uncertainty.