QNB dissects reasons behind German economy's underperformance

Doha: QNB expects Germanys real GDP to remain flat in 2024 and average growth of 1 percent in the next few years. The bank said in its weekly repor...

Doha: QNB expects Germanys real GDP to remain flat in 2024 and average growth of 1 percent in the next few years.

The bank said in its weekly report on dissecting the German economy's growth underperformance that the German economy faces major obstacles from negative trends in the industrial sector, inadequate infrastructure and loss of competitiveness.

The report said that, historically, Germany has been described as a model of high productivity, superior engineering expertise, precision, and a strong work ethic. It is no surprise that it has been the driving economic force of Europe for long periods of time, including during the post-World War II economic recovery and after the countrys unification.

"However, over the last couple of decades, secular headwinds started to mount. These included negative demographic trends, red tape, policy missteps, an inability to upgrade leading manufacturing sectors and adapt to the digital age. As a result, Germanys economy started to underperform in recent years," the report added.

QNB said there were three main factors driving the underperformance in economic growth of the German economy.