Suche
Mein Konto
Crisis in the German economy: record bankruptcies and a lull in orders!
The German economy is facing a crisis: record inflation, bankruptcies are rising and reforms are urgently needed.
Crisis in the German economy: record bankruptcies and a lull in orders!
The German economic situation is worrying and is reaching alarming lows. According to a report by the Time Industrial production has fallen to a level that is even below that during the Corona lockdowns. Almost 40% of companies complain about a lack of orders, with the numbers in automotive and mechanical engineering being particularly dramatic. Here, 43% and 46% respectively report an acute decline in orders.
Another worrying trend is corporate bankruptcies. In July 2023, 1,600 companies filed for bankruptcy, an increase of 13% compared to the previous year and even 64% more than before the corona pandemic. This figure represents the highest insolvency rate in the last 20 years, excluding the exceptional situations in April 2023.
Political measures and their effects
In response to this difficult situation, the federal government has taken various measures, including the expansion of the mother's pension and the introduction of compulsory collective agreements. However, experts question the effectiveness and urgency of these measures. Additional reforms, such as the planned cut in corporate taxes, are delayed while social security contributions rise.
Current political decisions are characterized by uncertainty and could, in practice, promote consumption rather than competitiveness. Experts agree that there is an urgent need for clear and consistent reforms to support long-term growth and stabilize the economy.
Outlook for the future
Overall, the situation is tense and the possibility of improvement remains uncertain. According to that IW Cologne It is crucial to get to the root of the problems in order to prevent future bankruptcies and the shrinking of industrial production.
The current economic situation requires quick action to put Germany on a more stable course. Only through comprehensive and decisive reforms can the potential for sustainable growth and recovery of the industry be unlocked.