Sead Dedovic - Financial World

The economic forecasters from around the world, as well as those from Germany, predict that Germans are in for some difficult times ahead, and that the country is at a very high risk of a significant economic decline in the coming years.

So far this year, Germany has seen huge declines in the economy, and it is difficult to predict whether things will be able to improve by the end of the year. Optimism is diminishing as time goes by. Inflation in the world has also affected Germany.

Additionally, one of the reasons why Germany is experiencing difficult times is the sharp increase in interest rates and high energy costs that have been a major contributor to this situation.

German Chancellor

In the opinion of the German chancellor, and many other leaders of Germany's political activities, the fight for 'green energy' will be a success and will result in a significant increase in the country's economy.

It seems, however, that things will not be quite so ideal, if one were to follow the comments of Siegfried Russwurm, the influential chief of the BDI industrial lobby. It is also necessary to invest a lot of money in such changes, Russwurm stressed.

"The transition will primarily see billions of euros invested in replacing existing stocks of fossil fuel technologies with renewable technologies, at significantly increased costs. This will not lead to additional economic growth in the short term," said Russwurm.

In addition, Timo Wollmershaeuser, an economic think-tank member from Ifo, highlighted the issue with the population as well. There is an increase in the number of elderly people in the country, as well as a decrease in the number of people working.

Things like these have a huge impact on the GDP of a country. "If the population is sinking, the GDP will not grow either," said Timo. COVID 19, war in Russia, inflation; All of these are closely related factors that led to the crisis in Germany, but also in many other countries.

The German authorities are looking for solutions. Since Germany has proven to be capable of 'getting out of chaos and being reborn' throughout its history, there can be no doubt that they will be able to do the same this time around as well.