Is Germany the „Sick Man in Europe“ again ("Economist")?

The „Economist“ published this headline a few months ago. Germany’s economy is projected to shrink this year, 2023. But only about less than one percent. Other Western countries are projected to grow economically.

Well, I’m not an economist. I can only rely on media reports and official statistics. One of these statistics (readable on „statista.de") says that since 1990 – the year of German reunification –, the Gross Domestic Product (GDP) in my country has fallen only five times: In 1993, in 2002/2003, in 2009 and in 2020.

Why did it happen in these years?

In 1993 there was a recession because of the end of special post-reunification effects.

In 2002/2003 there were the aftermaths of „9/11“, the imploded „Dot-Com-Bubble“, the Iraq war and the German social reform „Agenda 2010“.

In 2009, it was the world financial crisis that had a major impact on German economy.

And in 2020, there was, of course, a crisis because of the global corona epidemic.

You can see that a shrinking economy happens round about every ten years. And the reasons for German economic recessions have changed. From national causes to global causes (although corona marks an exception here, because it is not an economic issue).

I don’t know what to make of these facts to learn for the future. But German economy has always recovered very fast from a year of decline. 

Let’s hope there will be a better 2024.