The Economy is not imploding. While 2025 was a lost year for growth Germany‘s GDP is consistently growing since q4 2025 - despite a very interesting geopolitica

The Economy is not imploding. While 2025 was a lost year for growth Germany‘s GDP is consistently growing since q4 2025 - despite a very interesting geopolitical situation. It is part of the problem that every media outlet from progressive to far-right paints the economical situation in the worst light. What is decreasing are nominal wages at least for parts of the population which is a pure allocation problem. Sure the automobile sector has structural problems and the chemical industry needs cheaper energy but Germany is still an economical powerhouse even without a strong domestic ICT industry, which is, in comparison, the most important driver of growth in the US. During the pandemic something went terribly wrong and public institutions seem to be incredibly weak in the moment. Don’t be fooled though, the problems are solvable, the question is how to find political majorities for doing so. The tale of the weak economy is taken as a reason to cut down welfare and thus the CDU/CSU have a vested interest in writing down the economy. This policy will soon lead to even more people turning to political extremism and the CDU is going to suffer most from this development. On the other hand, with the AfD in charge in Sachsen-Anhalt, a small part of Germany with only 1.7 million voters, France, which has its own political problems, is already getting wary of chancellor Merz's plan to build the largest conventional military forces in Europe. Maybe this mechanism explains why so many Germans in the pacifist movement are so compatible to so called nationalists (who also want to withdraw from helping Ukraine against Putin). The biggest irony is that Germany is gaining so much through the Euro currency (most of the exported goods stay within the EU) and a German national currency, which the AfD wants to implement, would appreciate so hard and quickly that exports would go down enormously. That would easily cripple GDP by 10% or more leading to substantial problems.