German industry sees worst recession since 1945

German industry is experiencing its worst recession since the formation of the republic in 1945, writes Robin Winkler, chief economist of Deutsche Bank Research's economic department, in a recent study, News.Az reports citing Berliner Zeitung .

The expert noted that, on the one hand, the current recession is less severe than the recession after the financial crisis of 2008 and the coronavirus pandemic, and on the other hand, it is "deeper and longer than the main structural crises of the 20th century."

Winkler compared the current crisis with the recession of the early 1980s, when a strong energy shock and growing global competition also put German heavy industry in a state of survival. At the same time, according to the economist, this time the crisis threatens to be more severe due to the economic policy of the ruling coalition.

Earlier it became known that Germany is expecting large-scale cuts in the manufacturing industry due to rising energy prices and a reduction in exports. As Bloomberg writes, the country, which is experiencing a decline in business activity in the private sector (it fell to the lowest level in seven months), remains the main weak point of the eurozone - Germany's central bank warned of the risks of a moderate recession after a series of bad news from such automakers as Mercedes-Benz, BMW and Volkswagen.

Deutsche Bank: Industry with the strongest slump in history

"The hard data on industrial production indicate that German industry is experiencing the sharpest downturn in the history of the Federal Republic," writes Robin Winkler. The recent development of industrial production is historically unprecedented. The current downturn is less severe than the recessions following the 2008 financial crisis and the 2020 corona pandemic . "Nevertheless, the current slump is deeper and longer than the major structural crises of the 20th century," writes Winkler.

News.Az