The German industrial sector, long the backbone of the nation's economy, is facing unprecedented challenges. Recent data reveals a 5% year-over-year drop in orders for July, which, although smaller than the double-digit declines seen in previous months, signals deep-seated issues. The energy crisis and unfavorable domestic policies are crippling the sector, making it increasingly difficult for German companies to compete on the global stage.
The VDMA reports that both domestic and foreign orders continue to fall, with no signs of recovery in sight. Over the last three months, orders have dropped by 14%, further exacerbating concerns. This ongoing decline underscores the urgent need for policy shifts and innovative strategies to revive Germany's industrial might.
The consequences can be seen in the gross domestic product, which has officially been stagnating for seven years and is now falling slightly, but is only being kept afloat by massive government spending programs, which we all know generate nothing but ultimately destroy productivity. Germany has fallen into an economic and social downward spiral that it could only overcome through a radical policy change and a return to a free market economy. For ideological and intellectual reasons, there is absolutely no willingness to do so among the political caste.