Heavy burden on German industry: production in energy-intensive sectors is shrinking by 5.8 percent

Heavy burden on German industry: production in energy-intensive sectors is shrinking by 5.8 percent

According to a report by www.faz.net,

The report describes the ongoing problems facing German industry due to high energy prices. Production in energy-intensive industries continues to decline, reflecting the shift away from Russian gas supplies, the energy transition away from nuclear power and coal, and generally high energy prices. The chemical industry in particular is severely affected by high energy prices. Chemical production last year fell back to 1995 levels and shrank 7.6 percent in December. The entire economy was unable to free itself from the downward spiral at the end of the year. Energy production also recorded the most significant decline in production in 2023, falling by 15 percent.

The impact on the market and the financial industry is significant. The falling production of the chemical industry not only affects the country's economic performance, but also affects stock prices. A decline in production in energy-intensive industries can lead to an increase in imports and a decrease in exports, affecting Germany's trade balance. In addition, high energy prices could lead to rising costs for consumers, which in turn affects inflation and overall economic stability. It is therefore necessary that the government and industry find solutions to reverse the negative trend and reduce energy costs.