Germany's economic growth: Why higher investments are urgently needed now

Germany's economic growth: Why higher investments are urgently needed now

According to a report by www.dgb.de, Germany is struggling with many economic problems. Export demand is weakening, rising interest rates worldwide are impacting demand for capital goods, the war in Ukraine and the energy crisis are creating problems in energy supply and supply chains, high inflation and falling real wages are depressing consumer demand. Added to this is the federal government's restrictive fiscal policy. The European Central Bank (ECB) is raising interest rates excessively, which is slowing down investment in Germany.

The decline in German economic output is expected to have negative effects on the market and the financial sector. The ECB's planned key interest rate increase and the federal government's restrictive fiscal policy could further aggravate the economic situation. This could weaken investor and investor confidence, which could have a negative impact on the stock market and capital markets.

It is crucial that politicians take measures to stimulate investment and loosen fiscal policy in order to stabilize the economic situation. In the long term, an expansion of investments is necessary in order to maintain the future viability of the economy and strengthen social cohesion in society. In the short term, this could help stabilize the weak economy and cushion the negative impact on the market.