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Germany Enters Recession: Europe's Largest Economy Is Breaking Down

23 points by firstSpeaker 3y ago

Xeros80 3y ago
https://web.archive.org/web/20230526154105/https://www.bloomberg.com/news/articles/2023-05-25/germany-enters-recession-europe-s-largest-economy-is-breaking-down?leadSource=uverify%20wall https://web.archive.org/web/20230526154105/https://www.bloom...
drumhead 3y ago
It's heavily export oriented. When the world economy is growing, Germany is growing rapidly on all cylinders, as soon as it slows down, it takes a big hit.
- mrkstu 3y ago
  And if Tesla takes over more and more of it’s automotive segment in the US, that is another big hit to its bottom line.
  - snowpid 3y ago
    no, it isnt. VW was quiet weak in US, BMW and Mercedes have a different niche. Dear Americans, you arent the middle of the world. VW does have problems in China (and Tesla is quiet strong there)
    - ladyanita22 3y ago
      What a take... He's not saying Americans are the center of the world (I guess this is what you meant), he's saying America is a key market. It is, I'm European, but I would be damn stupid to not recognize America is almost as big as the whole EU. Edit: And in average, richer.
      - idiopathic 3y ago
        Just to echo your point… USA >> EU US GDP = $23.3 trillion EU GDP = $15.8 trillion even if you counted UK (to make Europe rather than EU) UK GDP = $3.1 trillion
ThorsBane 3y ago
It will all be alright. This is just an understandable and expected recalibration for the global economy after a global pandemic, global supply chain crunch, and the Ukraine-Russia war. The United States and Europe are fundamentally rock solid and poised for considerable growth and innovation for a long time yet, along with their allies and friendly rivals.
- ladyanita22 3y ago
  I tend to agree. Fundamentally, we're pro-market, liberal democracies. Compare that to Russia and China, for example. Those two are heavily controlled, corrupted plutocracies or even dictatorships. For all the issues America and Europe have (and we do have issues), I think the pillars of our economies and our societies are much better.
  - roundandround 3y ago
    This seems like a past performance as a measure of future returns error to me. China has had a lot of success with free market and exports while having substantial central control and without being a liberal democracy. It's not really clear how systems will fail or succeed as technological balance rebalances or unbalances power between the estates. I think long term leaders will continue to be parasitic burdens upon their societies but its quite possible that technology will help alleviate their typical consequences on productivity. For example, virtually every corporation is at its heart a failure in democratic control and a centrally controlled institution with either a long term dictator or oligarchy. They had substantially more problems competing in earlier times when paperwork overhead was literal paper.

23 points by firstSpeaker 3y ago

https://web.archive.org/web/20230526154105/https://www.bloomberg.com/news/articles/2023-05-25/germany-enters-recession-europe-s-largest-economy-is-breaking-down?leadSource=uverify%20wall https://web.archive.org/web/20230526154105/https://www.bloom...

drumhead 3y ago

It's heavily export oriented. When the world economy is growing, Germany is growing rapidly on all cylinders, as soon as it slows down, it takes a big hit.

mrkstu 3y ago
And if Tesla takes over more and more of it’s automotive segment in the US, that is another big hit to its bottom line.
- snowpid 3y ago
  no, it isnt. VW was quiet weak in US, BMW and Mercedes have a different niche. Dear Americans, you arent the middle of the world. VW does have problems in China (and Tesla is quiet strong there)
  - ladyanita22 3y ago
    What a take... He's not saying Americans are the center of the world (I guess this is what you meant), he's saying America is a key market. It is, I'm European, but I would be damn stupid to not recognize America is almost as big as the whole EU. Edit: And in average, richer.
    - idiopathic 3y ago
      Just to echo your point… USA >> EU US GDP = $23.3 trillion EU GDP = $15.8 trillion even if you counted UK (to make Europe rather than EU) UK GDP = $3.1 trillion

ThorsBane 3y ago

It will all be alright. This is just an understandable and expected recalibration for the global economy after a global pandemic, global supply chain crunch, and the Ukraine-Russia war. The United States and Europe are fundamentally rock solid and poised for considerable growth and innovation for a long time yet, along with their allies and friendly rivals.

ladyanita22 3y ago
I tend to agree. Fundamentally, we're pro-market, liberal democracies. Compare that to Russia and China, for example. Those two are heavily controlled, corrupted plutocracies or even dictatorships. For all the issues America and Europe have (and we do have issues), I think the pillars of our economies and our societies are much better.
- roundandround 3y ago
  This seems like a past performance as a measure of future returns error to me. China has had a lot of success with free market and exports while having substantial central control and without being a liberal democracy. It's not really clear how systems will fail or succeed as technological balance rebalances or unbalances power between the estates. I think long term leaders will continue to be parasitic burdens upon their societies but its quite possible that technology will help alleviate their typical consequences on productivity. For example, virtually every corporation is at its heart a failure in democratic control and a centrally controlled institution with either a long term dictator or oligarchy. They had substantially more problems competing in earlier times when paperwork overhead was literal paper.