Martin Ademmer

Germany’s Industrial Model Is Buckling Under Energy Costs and Chinese Competition

Germany’s industrial model has become a drag on growth, Bloomberg’s Marilen Martin argues, as the advantages that sustained it—cheap Russian gas, open global trade and leadership in high-value manufacturing—have eroded. Economist Martin Ademmer says the decline in output since 2018 increasingly reflects a lasting loss of economic potential rather than a cyclical downturn. Higher energy costs, Chinese competition and a more protectionist trading environment now leave Berlin trying to defend industry with limited fiscal and political room to maneuver.