Economist Südekum advocates an aggressive investment policy at the wealth creation summit

Economist Südekum advocates an aggressive investment policy at the wealth creation summit

According to a report from www.capital.de, economist Jens Südekum advocates an aggressive investment policy in Germany at Capital's wealth creation summit. He is of the opinion that Germany can still be saved as an industrial location and that an aggressive economic policy is necessary to create better international competitive conditions. This also includes subsidizing electricity prices and investments in future technologies as well as strategic autonomy from China. Südekum estimates that additional investments amounting to 100 billion euros will have to be made annually by the public sector by 2030. He emphasizes that Germany is highly dependent on China and that diversification of supply and sales markets as well as higher domestic production of strategic products are necessary to protect against geoeconomic risks. Despite the difficulties that Germany and Europe are facing, the USA is already on the right track and has implemented funding programs worth $1.4 trillion for domestic industry. However, the economist warns that a return to a government under Donald Trump could reverse these investment policies.

Another challenge for Germany is the paralysis of the global economy. According to the International Monetary Fund (IMF), there are no good prospects for Germany. The IMF has again revised downwards the growth forecasts for Germany for 2023. Nevertheless, Südekum is of the opinion that Germany is not yet in a phase of deindustrialization and that the numbers cannot be interpreted as harbingers of long-term decline. The industry may produce fewer units, but more money is earned with higher-quality processes.

One of the biggest challenges for Germany is the shortage of skilled workers. Südekum is concerned about the current mood towards immigration and emphasizes that Germany will not be able to avoid immigration. In addition to promoting female employment, further training and increasing automation, Germany needs 1.5 million gross immigrants per year in order to have a net workforce of 400,000.

In summary, it can be said that Germany can still be saved as an industrial location, but an aggressive investment policy and greater diversification of supply and sales markets are required in order to overcome the current challenges and secure growth and prosperity in the long term.

Source: According to a report from www.capital.de