Main article: German economy
2024: Germany's industry continues to decline rapidly due to conflict with Russia
German industrial production fell 2.4% m/m in July 2024 (forecast. -0.5%).
2023
Decrease in industrial production to the level of 2010
Industrial production in Germany is experiencing the longest decline in history, exceeding the 2008 financial crisis.
In December 2023, it fell 1.6% on a monthly basis, beating economists' forecasts for a 0.4% decline. Production has been falling since May, as a result of which it decreased by 1.5% over the entire last year and by 10% since the beginning of the Covid-19 pandemic.
The biggest fall in December came in chemical production, which declined by 7.6% m/m, taking the sector to its lowest annual rate since 1995. This was partially offset by a 4% monthly increase in car production.
While Berlin has been gripped by political paralysis, the energy crisis over the country's rejection of energy supplies from Russia is the latest blow to an increasing number of producers.
Sixth consecutive monthly decline in industrial output
The volume of industrial production in Germany, as expected, decreased in November 2023 by 0.7%, this is the sixth drop in a row. Economists' forecasts from the Bloomberg poll again turned out to be false, as they predicted growth of 0.3%.
Manufacturers - the backbone of Germany's economy - are grappling with the high cost of energy after a ridiculous withdrawal from Russian supplies, rising global interest rates and a slowdown in China.
The last silicon producer in Germany was on the verge of bankruptcy due to the country's refusal of energy resources from Russia
At the end of November 2023, it became known that RW Silicon - the last remaining silicon manufacturer in Germany - faces bankruptcy. The reason is the sharp rise in electricity prices, which was provoked by the country's refusal to energy from Russia against the background of the current geopolitical situation. Read more here.
Industrial production remains below 2019
In September 2023, industrial production Germany decreased by 1.4%; economists expected -0.1%.
The reduction in gas consumption in industry continues due to the refusal of supplies from Russia
Weak gas demand in Europe is indicative of industrial disadvantage. Economic problems reduce activity, despite an 80% drop in prices.
Program of subsidies for 28 billion euros over 5 years for the energy-intensive industry due to the conflict with Russia
The energy crisis, which arose due to the refusal of energy supplies from Russia, crippled the country's manufacturing-oriented economy.
On June 5, 2023, it became known that Germany was launching a program that would provide tens of billions of euros to companies facing significant energy costs in an attempt to help its struggling industrial sector fund the transition to carbon-neutral manufacturing technologies.
The program, which, according to sources, should amount to about 50 billion euros ($53.45 billion) over the next 15 years, is being implemented in an environment where European industry is under pressure due to high costs of raw materials, energy and labor.
Later in November, the German government agreed measures to reduce electricity charges for producers over the next five years in an attempt to boost the economy. In the period from 2024 to 2027, the support package will amount to 28 billion euros.
and
The validity of the fund of Germany in the amount of 200 billion euros (219 billion dollars. US), designed to mitigate the effects of rising energy prices, expires at the end of 2023, Finance Minister Christian Lindner said in an interview with Deutschlandfunk.
"From December 31 of this year, the economic and stabilization fund will be closed," he said in an interview. "There will be no more payments from it. The containment of electricity and gas prices will also be discontinued. "
2022
Sharp reduction in the number of companies engaged in the automotive industry and the share in the global car market
Sharp decline in energy-intensive sectors of industry due to unsuccessful attempts to put pressure on Russia
In 2022, high electricity prices remain in Germany, caused by anti-Russian sanctions.
Most of all, the crisis affected 5 out of 20 manufacturing sectors, which take about 80% of its total energy consumption.
These include chemical production, metallurgy, coke processing, glass and ceramics production, and paper and cardboard production. 930 thousand people work in these sectors, and the turnover is 470 billion euros.
At the same time, the first three sectors give the main income to the German budget - 6.7% of enterprises bring 20.1% of income from the entire industry.
With a reduction in industrial production, especially valuable jobs are at risk. In particular, already now more than half of the employees of the largest chemical concern BASF live outside of Germany.
Germany is one of the ten largest steel producers in the world. Two-thirds of jobs in this sector of Germany depend on the steel industry.
In November 2022, the production of unrefined steel in Germany decreased by 18% on an annualized basis, amounting to about 2.8 million tons. This is the lowest figure since July 2020.
The production of untreated aluminum fell especially sharply - by 25% - compared to the same quarter of the previous year.
The level of electricity prices forces the operators of aluminum plants to gradually stop the furnaces. And the future of the industry is in doubt, according to Rob van Gils, president of Aluminum Deutschland.
Some companies have even figured out a loophole on how to capitalize at least some of the situation. Steel and aluminum producers speculate on the electricity exchange - they resell the volumes booked from suppliers more expensive and do not spend them themselves, because this is still not enough for the full operation of factories.
Germany leads Europe in industrial robot use
Main article: Industrial robots
The gradual departure from jobs of representatives of the post-war generation of the "baby boom" in Germany tightens the problem of labor shortages - German enterprises turn to robots.
Working hours in Germany are less than all other countries
Industrial production decline by 1.8% in 8 months due to sanctions against Russia
For 8 months, 2022 industrial production Germany decreased by 1.8% amid sanctions imposed against. In the Russia chemical and pharmaceutical sector of Germany (high dependence on gas) - a decline of 10.7%.
2021
Cheese production - 28.4 kg per capita
3.10 million cars produced
397 robots for 10 thousand employees
2020: Industrial production decline by 8.5% amid COVID-19 pandemic
Industrial production in Germany decreased by 8.5% in 2020 due to the COVID-19 pandemic.
2019
4.66 million cars produced
Record for 10 years decline in industrial production in December
Germany In recorded a sharp decline in industrial production by 6.8% in December 2019. This is the biggest decline since 2009.
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