Germany may lose its status as the world’s third largest economy by 2026 due to sanctions imposed on Russia. writes about this Times with reference to prediction
Experts from the London Center for Economic and Business Research.
According to their predictions, Germany will be replaced by Japan in 2026 and India in 2027. As a result, Germany will become the world’s fifth largest economy within three years.
The world’s first and second economies are now America and China. Russia ranks eighth in the rankings. Experts do not rule out that Russia will rise to 14th place next year.
Germany’s central bank has lowered its forecast for the country’s gross domestic product (GDP) growth for 2024-2025 due to weak global demand. The financial regulator expects Germany’s GDP to grow by 0.4% in 2024 and 1.2% in 2025. Before this, the forecast was for an increase of 1.2% and 1.3% respectively.
The bank believes that the main brake on German industry is weak foreign demand. However, high financing costs and limited consumer spending restrict investments. Positive factors for the German economy include a stable labor market, a noticeable increase in wages and a weakening of the rate of price growth. In July-September 2023, Germany’s GDP decreased by 0.1%. On an annual basis, Germany’s GDP fell by 0.8%.
Leif-Erik Holm, an MP from the right-wing Alternative for Germany party, called on the German government on November 3 to abandon its “crazy sanctions policy” on the grounds that it would cause problems for the German economy. The MP stated that Germany, which was once an export country, was stalling. According to the latest data from Destatis, Germany’s exports decreased by 7.5% annually to 126.5 billion Euros in September.
Previously in Germany statedThat Russia returned to active world trade.