Unbelievable! Big Companies Are Fleeing Germany, IMF Issues Major WARNING, Energy Crisis Deepens!

Unbelievable! Big Companies Are Fleeing Germany, IMF Issues Major WARNING, Energy Crisis Deepens! #germany #energy #economy Germany, known for being really good at making and selling things, is facing some pretty tough times. We’re going to take a deep dive into what’s going on – from big companies leaving to problems with houses, a squeeze on the government’s money, and more. So, buckle up for a detailed journey through Germany’s economic rollercoaster. If You Like This Video; Like, Share, Comment And Subscribe. This Means So Much To Us! Thanks For Watching Our Video; Unbelievable! Big Companies Are Fleeing Germany, IMF Issues Major WARNING, Energy Crisis Deepens! The Economic Exodus Let’s start with the companies. Imagine big companies like Michelin and Goodyear, known for making tires. Well, they’re packing their bags and leaving Germany. Michelin is saying goodbye to German plants and moving everything to Poland. Goodyear is doing the same, and about 1,800 jobs are feeling the impact. Even Vallourec, a French group, stopped making something important for Germany’s exports – seamless pipes. And guess what? It’s not just these companies. Even big names like Volkswagen AG and Mercedes Benz are thinking about moving their production away from Germany. This is happening because of a problem with getting enough energy, especially because Russia, a big supplier, hit the pause button on sending gas. Chemical Sector Struggles: Now, let’s talk about the chemical sector – a big industry in Germany. BASF, a major player, is having a tough time because energy prices are going up. It’s like when the price of something you use every day suddenly becomes more expensive, and it affects your plans. BASF had to give a warning about not making as much profit as they wanted. Also, Linde, which makes industrial gases, decided to trade its shares in New York instead of Frankfurt because they think Germany might not be the best place to grow. Even a South African company called Sappi is thinking about selling its factory in Bavaria. So, you see, it’s a bit like a puzzle – all these pieces coming together to make things difficult. Economic Woes: A Macroscopic View Zooming out, we see the bigger picture. Companies that still do business with Russia, like BASF and BMW, are somehow managing to stay afloat. But Germany’s overall economic health is not looking so good. The things Germany sells to other countries are dropping, and the things it buys from other places are going up. Imagine going to a store, and suddenly, the prices are higher – that’s a bit like what’s happening. There’s also a worry about many jobs being cut, especially in the chemical industry. This might even affect agriculture, which is about growing things and making sure there’s enough food. The fertilizer used to help crops grow might become less because of these problems. Housing Crisis But wait, there’s more. Germany is also having a bit of trouble with houses. In the U.S., where people build and buy homes, things are tough, too, but there’s still a lot of demand – that’s when many people want to buy houses. In Germany, it’s a different story. Not many people want to buy houses right now, and that’s causing the prices to go down. In fact, they dropped a lot – almost 10% in a year! Imagine if the price of something you own, like a toy or a game, suddenly became less than before – that’s what’s happening with houses in Germany. Experts think this is because not as many people want to buy houses when the cost of borrowing money (interest rates) is high. It’s like if you wanted to buy a toy, but the price keeps going up, so you decide to wait. Government Response and Fiscal Quagmire The German government has a money problem – like when you plan to spend a certain amount of money, but then something unexpected happens. They wanted to use leftover money from a fund created during a global sickness (pandemic) to make Germany more eco-friendly and modern. But a court said no, and now they’re in a bit of a mess. The court’s decision is causing a ripple effect – like throwing a stone into a pond, and the ripples go far. Money that was supposed to help Ukraine and other important things is now uncertain. People are worried about what might happen in the future. Germany’s Fiscal Policies to Address the Economic Crisis People are not very happy with Chancellor Olaf Scholz, who is like the captain steering the ship. They say he hasn’t been clear about fixing the money mess. He says they will follow the rules for this year, but what about the years after? That’s still up in the air. Some are asking him to loosen the rules a bit so the country can handle unexpected challenges better. The mess with the money is not just a problem at home; it’s affecting Germany’s plans to become more eco-friendly and use cleaner energy. More Details In The Video