German Industry Has Taken a Permanent Hit, BE Study Shows
- Estimated 7% shortfall is half cyclical and half structural
- Potential manufacturing GVA has fallen to 0.5% from 1.5%
A worker screws together components at a factory in Bad Laer, Germany.
Photographer: Ben Kilb/BloombergThis article is for subscribers only.
Germany’s industry won’t be able to fully shake off the impact from its downturn of the past years, according to research by Bloomberg Economics.
While expectations are high for a rebound from the hit of the pandemic and the recent energy crisis, Thursday’s analysis now suggests that half of an estimated 7% shortfall in industrial activity will persist.