Will there be anything left of the German economy?

<p>Everything is going wrong in Germany right now.</p><p>The country is all-in on electrification but the cornerstone of its industry — automotive manufacturing — appears to have missed the mark on building electric cars. Meanwhile, the country is hollowing out its industrial base more broadly and is stuck in a doom-loop of austerity.</p><p>The chemical industry and heavy-electricity users are dead or dying due to the war in Ukraine and high energy prices. </p><p>Now they're being squeezed by China on electric cars. China is now set to be the world's top auto exporter in what's been a staggering rise from nearly nothing <a href="https://twitter.com/Birdyword/status/1701410887381483536" target="_blank" rel="nofollow">as recently as 2020</a>.</p><p>This is one of the most-impressive charts in economic history:</p><p>What's left for Germany? It's not construction, here is a chart showing surging project cancellations and falling orders:</p><p>The situation in German is terribly concerning and two weeks ago, German politicians <a href="https://www.forexlive.com/news/theres-no-help-coming-for-german-industry-20230830/" target="_blank" rel="follow">rejected </a>energy subsidies, something the economy minister said would be a death sentence for industry.</p><p>The German economy is likely to contract slightly this year and given the headwinds, it's a miracle it's not worse. In 2024, Germany faces the threat of a tighter fiscal situation along with the whims of natural gas prices.</p><p>Pray for a warm winter.</p>

This article was written by Adam Button at www.forexlive.com.