Germany's Economy Struggles amidst Deep-rooted Problems

Germany's economy, once a leader, is now facing significant challenges. The IMF predicts that Germany will be the only economy in the G7 to contract this year. The country's exposure to unique circumstances, such as the European war and the slowdown in China, has contributed to this decline. Interest rates have risen, hurting construction and business investments, while consumers struggle with high costs. Germany also faces long-term challenges, including vulnerability to geopolitical rivalries, the difficulty of achieving net-zero emissions, and an aging workforce. Additionally, Germany's state and bureaucracy are ill-prepared to address these issues.