The economic security of the European Union (EU) countries may face the threat of deterioration due to the destabilization of Germany, the largest production center in the region. According to the results of the first quarter of this year, the 0.3% decrease in Germany’s gross domestic product (GDP) volume may prevent the majority of European countries from overcoming the crisis. informs Bloomberg agency with reference to market participants.
One of the main reasons for Germany’s insufficiently high economic growth was the “decades of faulty energy policy”, the relatively slow transition to new technologies, and others. It is also noted that local authorities currently do not have the authority to resolve the structural issues that determine the competitiveness of the country’s manufacturing sector.
“Germany has been Europe’s economic powerhouse for decades, pulling the region out of crises after another. But this resilience is collapsing and this poses a danger to the entire continent. <....> Chancellor Olaf Scholz’s ad-hoc coalition has returned to petty feuds over everything from debt and spending to heat pumps and speed limits after the risks of power outages subsided.
On May 25, the American television channel CNBC referred to data from the Federal Statistical Office. reportedIt is stated that in the first quarter of 2023, Germany’s gross domestic product (GDP) volume decreased by 0.3%. In addition, the decline has continued for two consecutive quarters, marking the beginning of a technical recession for the European Union’s (EU) largest economy.
Ben Stock is a business analyst and writer for “Social Bites”. He offers insightful articles on the latest business news and developments, providing readers with a comprehensive understanding of the business world.