A container is unloaded at the port of Mukran after the arrival of a ship on a new Silk Road link between China and Germany.
Image: dpa
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For decades, the German economy has done well with Russian energy and Chinese markets. The lesson from the current situation is to reduce unhealthy dependencies.
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Whe current situation in the global economy is causing headaches for many managers. There are three developments whose effects overlap: the long-term consequences of the corona pandemic for global supply chains, which lead to delays and fuel inflation, an increasingly unpredictable Chinese government, whose path to self-imposed isolation is accelerated by the epidemic and the Ukraine war, which has caused energy costs in the heart of Europe to skyrocket. Each individual point represents a huge challenge in itself. Taken together, they have what it takes to become a threat to prosperity, growth and stability in Europe and especially in Germany.
While the growth forecasts at the beginning of the year still looked rosy in anticipation of a rapid recovery, the Russian invasion of Ukraine cracked a cornerstone of the German economic model in one fell swoop: internationally competitive energy prices, which make production “made in Germany” profitable for a strong industry .
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