The German economy has shrunk for two years in a row, will stagnate in 2025, and hardly grow thereafter. Faced with deep-seated structural challenges, Europe’s powerhouse is in an economic existential crisis.

The German economy shrank for the second straight year in 2024 as worried consumers held back on spending and Chinese competition ate into the country’s traditional exports of cars and industrial machinery.

Insolvencies and layoffs have cast doubt on the town's future prosperity, echoing wider anxieties in Europe's biggest economy as it heads toward February 23 elections. Politicians

Auto industry jobs have long been the lifeblood of the German town of Luedenscheid but now, a trade union official says, the sector’s woes have sparked fears it will turn into an “open-air industrial museum”.