Economic situation in Germany: Experts are sounding the alarm about bleak signs

Economic situation in Germany: Experts are sounding the alarm about bleak signs

According to a report by www.schwaebische.de, negative news about the economic situation in Germany is increasing. Citizens are groaning under rising energy and food prices, and many companies prefer foreign investments to investments in Germany. A survey by YouGov found that more than two thirds of Germans are very worried about Germany's economic situation. Experts confirm these gloomy omens and criticize Germany for relying too heavily on a planned economy.

The experts assessed the economic policy situation in Germany as part of the Economic Experts Survey (EES) and came to the conclusion that the economic policy situation has deteriorated significantly compared to the previous quarter. Germany performed particularly poorly with minus 16 points compared to the global average of plus 0.5 points. It is criticized that German economic policy relies too little on market mechanisms and too much on regulation and planned economic measures.

Other European countries such as Great Britain, Italy and Austria also performed similarly poorly. In a global comparison, countries such as the USA, India and China show a more positive development of their economic policies.

The experts also expressed concern about the political situation in Europe, which is deteriorating overall. Particular emphasis was placed on the decline in the quality of government work and a general decline in political stability in North America and Europe.

This development also has an impact on inflation, with a gradual leveling off expected in the Global North, while inflation is forecast to explode in other parts of the world. By 2026, the inflation rate in Western Europe is expected to fall to 2.4 percent, slowly approaching the ECB's target of 2.0 percent.

Overall, there is a worrying overall picture that affects both the economic and political situation in Germany and Europe. Current developments could also have an impact on the financial market and the financial industry, which should be closely monitored and evaluated.