The German economy has been stuck in a crisis for the past two years amid stagnant growth and growing structural challenges.

High energy prices, bureaucratic red tape, lagging investment in physical and digital infrastructure, as well as weakening demand in key foreign markets have hit German firms hard.

The economic slowdown in China, in particular, has had a major impact.

The Asian giant has long been a key market for German industrial companies, especially in the automotive, machinery and chemical sectors. And Chinese orders helped create well-paid jobs in Germany.

But multiple economic challenges, including a property market crisis, trade tensions and demographic problems, have shaken consumer confidence in the world's second-biggest economy and slowed growth. This has also led to lower demand for German goods.

"German exports to China expanded by double digits in the 1990s and 2000s, but growth began slowing a decade ago," according to a report published by the Rhodium Group in February 2024.

"After peaking in 2022, exports fell by 9% in 2023 despite continued economic growth in China — by far the steepest decline since China joined the WTO," it said.

Struggling to deal with the challenging business environment, many German companies — including big names like Volkswagen, BASF, Continental and ZF, among others — have announced restructuring and cost-cutting measures, including thousands of job cuts in Germany.

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At the Berlin Global Dialogue last........

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