The economic conditions in Germany are so horrible that a large chunk of German manufacturers are moving their production to other countries.
RT:
One in three German manufacturers is considering moving production to other countries amid economic troubles, double the number recorded in 2022, Bild news outlet reported on Saturday, citing Siegfried Russwurm, the head of the Federation of German Industries (BDI).
According to the report, among the latest firms planning to relocate is household appliance manufacturer Miele, which plans to cut 2,000 jobs in Germany and move 700 positions to its site in Poland. Heating manufacturer Viessmann had already moved 3,000 jobs to Poland.
Volkswagen said last year that it would build a new battery factory in the US, and BASF announced plans to invest €10 billion in a petrochemicals plant in China amid job cuts at its headquarters in Germany. French steel pipe manufacturer Vallourec shut down production in Germany in September last year, while tiremaker Michelin and its US rival Goodyear said they would also close their German plants by the end of 2025.
Russwurm says that a growing number of companies have reported that their “patience with Germany is at an end.” According to him, the slowdown in economic growth and high rates of inflation, especially with regard to energy, have resulted in less investment, and Berlin lacks a strategy to turn the situation around. This in turn leads to a gradual decline in manufacturing, he said, and while existing production lines may continue to operate for a while, “new ones are no longer being built in Germany.”
The German government has implemented the worst economic policies imaginable. They sanctioned Russia their most important energy supplier and decommissioned nuclear power plants. This after they locked down the economy for two years over the virus hoax. The cost of energy is out of control and this has had a very negative impact on manufacturing.
The country is rapidly deindustrializing.
"Germany Is In Really Big Trouble": Perfect Storm Of Terrible Trends Paints "Bleak" Picture As "Distress Is Spreading To Other Sectors" https://t.co/CZWUtIvFrw
— zerohedge (@zerohedge) February 11, 2024
Germany was traditionally the main economic engine of the European Union bloc. As the situation continues to degrade in Germany so will the rest of the EU.
