Here are five key reasons why Germany's economy is struggling

Here are five key reasons why Germany's economy is struggling as voters decide on 23 February who will run their next government.

Transcript

00:00Germany is facing a defining moment as its economic model, long reliant on cheap Russian

00:06gas and exports to China, lies in tatters.

00:10Europe's largest economy has stagnated with no real growth in five years, leaving businesses

00:15and citizens anxious about the future.

00:19The upcoming national election on February the 23rd will be crucial in delivering a fresh

00:23strategy to revive the nation.

00:27For the past 75 years, Germany has been built very much on consensus, stability-oriented,

00:32lots of checks and balances in the political system.

00:36And that makes rapid change very difficult.

00:40And we need to have or need to change the mindset to first understand we need to be

00:46much faster on economic transformations.

00:50Multiple factors have contributed to Germany's decline.

00:53Excessive bureaucracy, shortage of skilled workers, slow technological adoption and a

00:58lack of clear leadership from the outgoing coalition government are some of them.

01:03For example, the automotive sector, the shift towards electric cars, there many German companies

01:10have been too slow.

01:12They have enjoyed the success of the 2010s and they have been too slow in understanding

01:19that they need to change and adapt.

01:22On the other hand, external challenges such as rising competition from China and soaring

01:26energy prices following Russia's invasion of Ukraine weakened German companies' position.

01:31Skyrocketing electricity prices made German industries less competitive globally.

01:36Meanwhile, Chinese manufacturers, backed by state subsidies, have eroded demand for German

01:42machinery and cars.

01:44To revitalize the economy, many call for loosening constitutional debt limits to boost spending

01:49on infrastructure and education.

01:52I really hope with the new government in Germany we can get this solved because at the moment

01:56it's too much bureaucracy.

02:00So we really need to make a more company and enterprise-friendly politic again.

02:10As the nation grapples with these challenges, the next government will have to prioritize

02:14agility and adaptation to secure its future.