The state of the German economy indicates that new difficulties await it, the agency "Prime" quotes Bloomberg forecast. It was expected that after a decline in GDP in the fourth quarter, the situation would improve somewhat this year, but it turned out to be different. The country faces a long-term decline in domestic demand amid waning interest in investment in manufacturing, technology and equipment.
Europe's once leading economy has lost stability. According to Barings fund manager Brian Mangviro, all developed countries are experiencing a slowdown in economic growth, but Germany is in trouble, helped by high energy costs. The German auto industry is also suffering, with China increasingly competing with it.
Increased competition is seen in all sectors of the country - around 15% of German companies are experiencing financial problems, the highest proportion in Europe. The real estate sector is weakened - its major players, both Rene Benko's Signa and Adler Group SA, are facing bankruptcy and liquidation.