FX.co ★ German capital outflow seems unprecedented

A crisis is arising in the German economy. According to experts, it affects financial flows. Friedrich Merz, the chairman of Germany's center-right Christian Democratic Union (CDU), confirms such a tendency. “The capital outflow in Germany is on an unprecedented scale,” he thinks.

Europe's largest economy is facing an unprecedented outflow of money. This has seriously worried analysts and markets. Nevertheless, the head of the CDU considers the German economy to be strong and able to cope with these challenges. However, Friedrich Merz draws attention to some weak sectors of the German economy. According to the politician, they remain out of Chancellor Olaf Scholz's sight. F. Merz attributes the capital outflow from Germany to such shortcomings.

The head of the CDU believes that the country needs reforms aimed at improving the business climate. ‘Psychologically, we are probably in worse shape than the economy,” F. Merz emphasized.

Earlier, Martin Ademmer, an economist for Bloomberg Economics, said that after a recession and almost zero growth, the German economy "shows signs of life." Progress is most noticeable in tourism, hospitality, and services. Meanwhile, the improvement process in the German industry is slower than in other sectors.