Today: Wednesday, 1 February 2023 year

Germany on the verge of bankruptcy

Germany on the verge of bankruptcy

According to experts, the bankruptcy of Germany is not far off. Due to the shortage of energy resources, this will lead to a reduction in the German economy with a wave of bankruptcies and unemployment. 

“The German economy is in a recession. Rapidly rising energy prices are putting pressure on the economy and driving it into recession,” analysts at the Institute for World Economics (IME) said.

Germany is already in recession, and next year, instead of GDP growth, it will show a decline of 150 billion euros. At the same time, inflation will accelerate to 8.7 percent, and energy costs will increase by 260 billion.

“The difficult situation could not but affect the enterprises. Prospects for business have become more gloomy, the investment climate has worsened,” the publication says.

In August, the number of bankruptcies increased by 26 percent compared to the same period last year and reached 718 cases; in September, analysts expect this figure to increase by another quarter.

“For a long time, the number of bankruptcies remained low, but now there has been a turn for the worse,” explained economist Steffen Müller.