Often referred to as the powerhouse of the EU economy, Germany is now operating beyond its capacity. The odds are that the largest economy in Europe will be crippled by the severe energy crisis. The question is whether Germany will be able to tackle the upheaval.
The Telegraph acknowledged openly that the German economy had been going through the worst economic shock in the last 73 years. “German industry suffers worst energy shock since 1949,” the red-hot article suggests the dismal content. The columnist relates the energy crisis to sky-high gas prices, soaring inflation, and poor morale among entrepreneurs. Electricity bills for industrial enterprises have ballooned by a record 139% from a year ago. Fast inflation acceleration poses a grave threat to the German economy which might have already entered a recession, the article reads. Apart from humongous electricity bills, households have to deal with elevated food prices and prices of basic consumer goods. For example, butter prices have surged by nearly 75%, whereas vegetable oil prices have been 50% up.
In September, Germany’s central bank predicted a considerable decline in the country’s national economic output in the coming winter. Bundesbank underscores the strong likelihood of a negative GDP even without mandatory savings in gas consumption. Meanwhile, recession risks are getting more and more evident in the German economy.