German indicators are once again giving mixed signals on how the country's economy is performing. On the one hand, many industries are growing. On the other hand, there are clear signs of overall fatigue. It is becoming increasingly difficult for Germany to cope with its role as Europe’s economic locomotive.
According to German Finance Minister Christian Lindner, the country resembles a “tired man” in need of “a good cup of coffee”. At the same time, he denies recent suggestions that Germany is the “sick man” of Europe. Notably, this term was first used with respect to Germany in the late 1990s as the country was suffering from extremely elevated unemployment rates and falling exports.
However, the situation is not so gloomy, Lindner claims. The current state of affairs is different from the previous crisis. "Germany is a tired man after a short night," the official noted in a statement. Looking ahead, the economy is expected to recover, driven by structural reforms.
In 2023, German GDP declined by 0.3%, mass-selling daily Bild reported in early January, citing the Federal Statistical Office. The key factors behind a slowdown in Europe's largest economy were galloping inflation and record interest rates, as well as the Russia-Ukraine and Middle East conflicts.