The German economy has shrunk for two years in a row, will stagnate in 2025, and hardly grow thereafter. Faced with deep-seated structural challenges, Europe’s powerhouse is in an economic existential crisis.

The German economy currently faces many problems. The three most pressing structural economic issues are energy, the changing role of China, and deteriorated competitiveness due to a decade-long underinvestment. Here’s what we think needs to be done to solve or at least tackle these issues.

The German economy shrank for the second straight year in 2024 as worried consumers held back on spending and Chinese competition ate into the country’s traditional exports of cars and industrial machinery.

Insolvencies and layoffs have cast doubt on the town's future prosperity, echoing wider anxieties in Europe's biggest economy as it heads toward February 23 elections. Politicians