The article focuses only on the near time statistics and is missing out the long term statistics as well as effects of the COVID19 pandemic.<p>The effects of the COVID19 pandemic were that the bankruptcies law was temporarily changed, which had the effect that companies that were already on a way to bankruptcy could live longer. That is also the reason why in 2020 the numbers were at a low point for almost 20 years. Then in 2021 the numbers soared. So the the 2024 prediction will be still lower than the 2021 numbers.<p>The long term view can be seen here: <a href="https://de.statista.com/statistik/daten/studie/4898/umfrage/anzahl-von-insolvenzen-in-deutschland/" rel="nofollow">https://de.statista.com/statistik/daten/studie/4898/umfrage/...</a>
As a German who lived abroad a long time, but moved to Berlin eight years ago, here’s my (completely personal) assessment of why Germany is going down the drain economically - and will continue to do so:<p>1) Mindset and Culture. The idea of entrepreneurship, hard work and reward for risk is becoming completely alien to Germans. New technologies and high growth sectors are almost exclusively perceived in terms of their risks and downsides. Security, reliance on the government for problem solving and tall poppy syndrome are paramount.<p>2) Overly complex civic systems. Germans always were famous for their bureaucracy. But government interference in the most minute details of running a business, endless red tape and micro regulations have made it largely impossible to be competitive on the international stage.<p>3) Poor Work Ethic. What? The Germans? Aren’t they known to be the hard working ones? Well - somehow, our trains are also known to be the punctual ones. These cliches might have been true during the “Wirtschaftswunder” - but today, Germans work the fewest hours of any OECD country.<p>4) Climate Focus. Germany’s government is focused on a largely ideologically driven understanding of climate change prevention. It’s not just that Russian gas is no longer available - in addition all nuclear power plants were shut off. Climate regulation and taxation also adds to rising energy prices and production costs.<p>5) Worker Rights: Germany has very high levels of worker protections, making it hard to scale workforces up and down and near impossible to dismiss employees for performance reasons.<p>6) High Taxes. Germany has some of the highest corporation and personal income taxes in the developed world. And while e.g. Scandinavian countries have even higher taxes, in Germany it doesn’t feel like you’re getting something of equal value back from the state. This is of course highly subjective.<p>7) Few Future Industries. Germany’s industry has focused on gas powered mobility and advanced machine building - and has become a world leader in many of these areas. It has, however, very few software, AI, or other companies that make up the bulk of e.g. the US economic growth.<p>There’s probably many more - but this might paint a picture from the inside.
I've heard that the Ukraine War, and consequent loss of Russian gas, was devastating for German chemical and manufacturing because of the increase in cost of not just energy but also feedstock.
How does this fit with the observation of the German DAX going from 12,000 (during pandemic even below 9k shortly) to currently 18,000? Can anyone give a good explanation?