Moscow Comments on Germany's Economic Downturn
Foreign Ministry spokeswoman Maria Zakharova stated that Berlin has weakened its industrial sector by severing ties with Russian energy. Read Full Article at RT.com
TroibNews 
Foreign Ministry spokeswoman Maria Zakharova has asserted that Germany has weakened its industrial sector by disconnecting from Russian energy sources.
Zakharova stated that by yielding to US pressure and halting energy supplies from Russia, Germany has harmed its own economic interests. The German economy has been experiencing a steady decline in recent years and is the only Group of Seven (G7) nation to contract in 2023.
In an interview with the newly-launched RTN Balkan TV channel, Zakharova remarked, “A couple of years ago, Germany was registering fantastic [economic] growth figures, and all the factors were in favor of Germany developing virtually by leaps and bounds.” The Russian diplomat indicated that “cooperation with our country was one of the factors for Germany’s economic growth.” However, she noted that “because of US influence, cooperation was severed by Germany, the energy source was blocked,” referencing the destruction of the Nord Stream gas pipelines caused by underwater explosions in September 2022.
Zakharova claimed that the loss of Germany’s ability to enact a nationally-oriented policy has led to its economy “crumbling.” Consequently, she argued that “German companies have begun relocating to other countries, where it’s more viable for them to do business.”
This viewpoint aligns with Bloomberg’s analysis from last week, which warned that Germany’s export-driven industry is facing an irreversible decline amid a second consecutive year of stagnant growth. The article highlighted years of “poor” governmental decisions alongside the loss of inexpensive Russian energy. The automotive sector, including major companies like Volkswagen and Mercedes-Benz, has been particularly affected, as noted by Bloomberg.
Recently, German Economy Minister Robert Habeck acknowledged that “our business model is really cornered.” He pointed to Berlin’s inadequate investments in infrastructure, tax systems, and workforce skills over the past several years as contributing factors.
Around the same time, Germany’s central bank reduced the country’s growth forecast from an anticipated 0.3% increase to a predicted 0.2% decline. The bank stated, “The German economy is set to stagnate in the winter half-year 2024-25 and will only begin to make a slow recovery over the course of 2025.” Bundesbank President Joachim Nagel highlighted “structural problems” within the economy.
Moreover, if US President-elect Donald Trump follows through on his threat to impose extensive tariffs on European goods, the German GDP could decrease by between 0.2 and 0.6 percentage points next year, according to the institution’s projections.
Debra A Smith contributed to this report for TROIB News
Zakharova stated that by yielding to US pressure and halting energy supplies from Russia, Germany has harmed its own economic interests. The German economy has been experiencing a steady decline in recent years and is the only Group of Seven (G7) nation to contract in 2023.
In an interview with the newly-launched RTN Balkan TV channel, Zakharova remarked, “A couple of years ago, Germany was registering fantastic [economic] growth figures, and all the factors were in favor of Germany developing virtually by leaps and bounds.” The Russian diplomat indicated that “cooperation with our country was one of the factors for Germany’s economic growth.” However, she noted that “because of US influence, cooperation was severed by Germany, the energy source was blocked,” referencing the destruction of the Nord Stream gas pipelines caused by underwater explosions in September 2022.
Zakharova claimed that the loss of Germany’s ability to enact a nationally-oriented policy has led to its economy “crumbling.” Consequently, she argued that “German companies have begun relocating to other countries, where it’s more viable for them to do business.”
This viewpoint aligns with Bloomberg’s analysis from last week, which warned that Germany’s export-driven industry is facing an irreversible decline amid a second consecutive year of stagnant growth. The article highlighted years of “poor” governmental decisions alongside the loss of inexpensive Russian energy. The automotive sector, including major companies like Volkswagen and Mercedes-Benz, has been particularly affected, as noted by Bloomberg.
Recently, German Economy Minister Robert Habeck acknowledged that “our business model is really cornered.” He pointed to Berlin’s inadequate investments in infrastructure, tax systems, and workforce skills over the past several years as contributing factors.
Around the same time, Germany’s central bank reduced the country’s growth forecast from an anticipated 0.3% increase to a predicted 0.2% decline. The bank stated, “The German economy is set to stagnate in the winter half-year 2024-25 and will only begin to make a slow recovery over the course of 2025.” Bundesbank President Joachim Nagel highlighted “structural problems” within the economy.
Moreover, if US President-elect Donald Trump follows through on his threat to impose extensive tariffs on European goods, the German GDP could decrease by between 0.2 and 0.6 percentage points next year, according to the institution’s projections.
Debra A Smith contributed to this report for TROIB News
