Moscow weighs in on Germany’s economic decline — RT World News

By caving in to US strain and chopping off vitality provides from Russia, Germany has shot itself within the foot economically, Russian Overseas Ministry spokeswoman Maria Zakharova has claimed.

The German economic system has been steadily contracting in recent times; the one Group of Seven economic system to shrink in 2023.

In an interview with the newly-launched RT Balkan TV channel revealed on Saturday, Zakharova mentioned: “A few years in the past, Germany was registering incredible [economic] progress figures, and all of the elements had been in favor of Germany creating nearly by leaps and bounds.”

In line with the Russian diplomat, “cooperation with our nation was one of many elements for Germany’s financial progress.” 
Nevertheless, “due to US affect, cooperation was severed by Germany, the vitality supply was blocked,” Zakharova said, citing the destruction of the Nord Stream fuel pipelines because of underwater explosions in September 2022.”

“The lack of [Berlin’s] skill to pursue a nationally-oriented coverage” has resulted within the nation’s economic system “crumbling,” the official claimed. Because of this, “German firms have begun relocating to different nations, the place it’s extra viable for them to do enterprise,” Zakharova concluded.

Her evaluation was echoed by Bloomberg’s evaluation final week, with the media outlet warning that Germany’s export-driven trade is now going through an irreversible decline amid a second 12 months of zero progress. The article cited years of “poor” authorities choices in addition to the lack of low cost Russian vitality.
Among the many hardest-hit sectors is Germany’s famed automotive trade, with such giants as Volkswagen and Mercedes-Benz bearing the brunt, in line with Bloomberg.

Earlier this month, German Economic system Minister Robert Habeck acknowledged that “our enterprise mannequin is actually cornered.” He cited Berlin’s failure to make adequate investments in its infrastructure, tax system and workforce abilities during the last a number of years.

At across the similar time, Germany’s central financial institution slashed the nation’s progress outlook from a beforehand projected 0.3% enlargement to a 0.2% contraction.

“The German economic system is about to stagnate within the winter half-year 2024-25 and can solely start to make a sluggish restoration over the course of 2025,” it said. Bundesbank President Joachim Nagel warned of “structural issues.”

Ought to US President-elect Donald Trump make good on his risk to slap sweeping tariffs on European items, Germany’s GDP may shed between 0.2 and 0.6 proportion factors subsequent 12 months, the establishment additionally predicted.