Germany's powerful economy is in full collapse - The collapse is due to anti-Russian sanctions and the loss of Nord Stream 2

Europe's most powerful economy, Germany, is in a state of full collapse—and this is not only due to the consequences of anti-Russian sanctions, but also due to the loss of the Nord Stream 2 natural gas pipeline, through which Russian natural gas supplies flowed to Europe via Germany, fueling Berlin's industrial power, The National Interest reports.

As noted, the German economy is currently experiencing a recession, mainly due to high energy prices because of the disruption of natural gas flows from Russia. The GDP of Europe's largest economy shrank by 0.2% in 2024, recording the second consecutive year of decline, according to data from the country's Federal Statistical Office (Destatis). This situation, with the economy shrinking for two consecutive years, is the first time it has been observed since 2002-2003.

In September, Germany's Economy Minister, Katharina Reiche, admitted that the German economy, which has been in a phase of zero growth since 2019, is in a "serious situation." She expressed concern about high energy costs and the "very, very high" costs employers face for personnel beyond wages.

www.bankingnews.gr