It has become known what kind of threat Germany may soon find itself under.
According to the study, the European state is threatened by deindustrialization in the medium term.
This information was shared by the Boston Consulting Group and the German Institute of Economics (IW), which conducted an analysis commissioned by the German Industrial Association (BDI).
As experts have found out, deindustrialization in Germany may accelerate significantly in the coming years.
Currently, one fifth of all products manufactured in the country are under threat.
The reasons for this lie in the following factors:
- rising energy prices;
- bureaucracy;
- reduction in exports due to reduction in sales markets;
- aging infrastructure;
- shortage of qualified personnel.
Germany may lose to all competitors on the market. In particular, the German auto industry risks not being able to withstand competition from China, and in the market of future technologies, Germany may be ousted by the USA and China.
The study's authors concluded that Germany needs at least €1.4 billion in additional investment by 2030 to slow down the process of deindustrialization.
