A serious and long lasting economic downturn in Europe is now within sight. Not a mild recession, but something truly transformative… something similar to the 1930’s great depression. The energy crisis simmering on the back-burner since 2 years now seems to be getting close to its boiling point: with a war in Europe, the blow up and closure of most natural gas pipelines, persistent inflation, drought and a complete global geopolitical rift on top of it all, only luck can save Europe from its fate.
“Labour without energy is a corpse; capital without energy is a sculpture.”
Professor Steve Keen
GDP fell by 0.3% for the quarter when adjusted for price and seasonal effects, according to the data from the Federal Statistical Office, Destatis.“After GDP growth entered negative territory at the end of 2022, the German economy has now recorded two consecutive negative quarters,” said Destatis President Ruth Brand. Inflation continued to take its toll on the German economy during the quarter, the office said. This was reflected in household consumption, which was down 1.2% quarter-on-quarter after price and seasonal adjustments…
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