Spiegel: German economy to face ‘tragedy in five acts’
The authors of the Spiegel edition said that the German economy is falling into recession, which in the long run will greatly weaken the country. According to journalists, all this is connected with a record price increase in the energy market.
Observers note that the question is no longer whether the crisis will start in Germany, but how much it will affect the country and how long it will last. “This tragedy has five acts, beginning with a price shock in the energy market,” the authors say.
According to journalists, the enterprises that are most dependent on electricity and gas will begin to suffer first of all. This will primarily affect paper, fertiliser and steel companies.
Already in the ‘second act’ the country is to receive a further hit to its industrial sector. Moreover, as the authors note, it will be about banal survival for 90 percent of companies.
Firms will raise prices for goods because of increased costs, leading to the ‘third act’, when the consumer sentiment index in Germany will rapidly slide down.
As far as the ‘fourth and fifth acts’ are concerned, journalists characterise them in the following way, “Consumption will decline, enterprises will start closing, unemployment will grow. There is a name to describe this drama – recession. And it looks like the country will soon fall into it.”