Germany's Economic Decline

Germany's economic troubles have been building since around 2017, with factors like the British referendum acting as potential triggers for a decline that many observers only began noticing recently. The country, once the envy of the world for its robust industrial model, is now struggling due to its long-standing focus on traditional industries, such as automotive and mechanical engineering, which have become less competitive in the face of technological change. This reliance has led to a failure to adapt to new trends, such as digitalization and electric vehicles, where Germany has lagged behind countries like China and the United States. As a result, German companies are now facing significant challenges, including closing factories for the first time as they confront the need for innovation and modernization.