Germany faces pressure on traditional growth model amid global shifts

Germany faces pressure on traditional growth model amid global shifts
Banking & Financial Services
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Wolfram Schweickhardt Spokesman | KfW Group

Germany's economic growth model, traditionally reliant on the export of high-quality capital goods within a multilateral trading framework, is experiencing mounting pressure. The country's position in global competition presents both strengths and weaknesses. Persistent stagnation over the past five years has highlighted structural issues.

Global geopolitical shifts are prompting Germany and Europe to enhance their security and defense capabilities independently. Despite this focus, it remains crucial for Germany to tackle significant societal and economic challenges. These include achieving climate neutrality, advancing digitalization and innovation, managing demographic changes, ensuring a sustainable energy supply, and bolstering international competitiveness.