Economist Podcasts
Teutonic plague: is Germany the sick man of Europe?
Aug 29, 2023
Henry Trix, the insightful writer behind the Schumpeter column for The Economist, dives into Germany's economic challenges, where it risks being the only G7 economy to contract this year. He discusses the growing consumer preference for larger electric vehicles and the concerning environmental impact of this trend. Trix also touches on the decline of Mandarin learning, reflecting on cultural shifts and how they affect global perceptions. Finally, he highlights urgent reforms needed in Germany's bureaucracy and digitalization efforts to regain its economic footing.
24:55
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Quick takeaways
- Germany's economy is facing significant challenges, including exposure to unique circumstances and long-term issues such as net-zero emissions and an aging workforce.
- The popularity of big electric vehicles (EVs) is growing, but their environmental impact during production and strain on the electric grid pose challenges.
Deep dives
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.
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