Editing Economy of Germany (section)

==Challenges==
[[File:Electromobility Summit Berlin 2013 - Angela Merkel.JPG|thumb|Angela Merkel at the [[Electric vehicle|Electromobility]] conference in Berlin. All new cars sold in Germany must be [[Zero-emissions vehicle|zero-emission vehicles]] from 2035.<ref>{{cite news |title=EU countries approve 2035 phaseout of CO2-emitting cars |url=https://www.reuters.com/business/autos-transportation/eu-countries-poised-approve-2035-phaseout-co2-emitting-cars-2023-03-28/ |work=Reuters |date=29 March 2023}}</ref>]]
Despite economic prosperity, Germany's biggest threat to future economic development is the nation's declining birthrate, which is among the lowest in the world. This is particularly prevalent in parts of society with higher education. As a result, the numbers of workers are expected to decrease and the government spending needed to support pensioners and healthcare will increase if the trend is not reversed.<ref>[https://www.telegraph.co.uk/business/2016/03/04/debt-explosion-awaits-unless-policymakers-defuse-demographic-tim/ Debt 'explosion' awaits unless policymakers defuse demographic timebomb, warns IMF chief] {{webarchive|url=https://web.archive.org/web/20171203053817/http://www.telegraph.co.uk/business/2016/03/04/debt-explosion-awaits-unless-policymakers-defuse-demographic-tim/ |date=3 December 2017}}, The Telegraph. Retrieved 2016-6-03.</ref>

Less than a quarter of German people expect living conditions to improve in the coming decades.<ref>The Economist, March 28, 2020, page 4.</ref>

On August 25, 2020, [[Federal Statistical Office of Germany]] revealed that the German economy plunged by 9.7% in the second quarter which is the worst on record. The latest figures show how hard the German economy was hit by the government measures in response to the [[COVID-19 pandemic in Germany|COVID-19 pandemic]].<ref>{{cite web|url=https://www.dw.com/en/german-economy-plunges-by-record-97/a-54690807 |title= German economy plunges by record 9.7% |access-date=25 August 2020 |website= DW}}</ref>

Energy-intensive German industry and [[List of exports of Germany|German exporters]] were hit particularly hard by the [[Global energy crisis (2021–present)|2022 global energy crisis]].<ref>{{cite news |title=A Grave Threat to Industry in Germany |url=https://www.spiegel.de/international/business/growing-energy-crisis-a-grave-threat-to-industry-in-germany-a-9152547c-a31d-483e-a70c-242c280cab23 |work=[[Der Spiegel]] |date=21 September 2022}}</ref><ref>{{cite news |title=How Bad Will the German Recession Be? |url=https://www.spiegel.de/international/business/energy-crisis-fallout-how-bad-will-the-german-recession-be-a-9e1f479e-5fef-4e62-b5ca-2f9e87b9bbca |work=Der Spiegel |date=14 September 2022}}</ref> Economy Minister [[Robert Habeck]] warned that the planned end of [[Russia in the European energy sector|Russian energy imports]] will permanently raise energy prices for German industry and consumers.<ref>{{cite news |title=Germany's Era of Cheap Energy Is Over, Economy Minister Says |url=https://www.wsj.com/livecoverage/russia-ukraine-latest-news-2022-05-02/card/germany-s-era-of-cheap-energy-is-over-economy-minister-says-YAZ6a0GyZrTsLYwSfv0x |work=The Wall Street Journal |date=2 May 2022}}</ref>

In the early 21st century, German governments supported the [[European Green Deal]] and Germany's [[Energiewende|transition to green energy]].<ref>{{cite news |title=EU ministers approve landmark climate measures, but tough talks await |url=https://www.politico.eu/article/eu-ministers-approve-landmark-climate-measures/ |work=Politico |date=29 June 2022}}</ref> Germany planned to [[Coal phase-out|phase out coal]] by 2030.<ref>{{cite news |title=Germany's Habeck Hopeful on Switching Off Coal Plants |url=https://www.bloomberg.com/news/articles/2023-11-03/germany-s-habeck-says-don-t-lose-hope-on-early-coal-exit-by-2030 |work=Bloomberg |date=3 November 2023}}</ref> The last three [[Nuclear power in Germany|nuclear power plants]] in Germany were shut down on 15 April 2023.<ref>{{cite news |title=Germany has shut down its last three nuclear power plants, and some climate scientists are aghast |url=https://www.politico.eu/article/nuclear-reactors-germany-invest-gas-power-plants-energy/ |work=NBC News |date=18 April 2023}}</ref><ref>{{cite news |title=After scrapping nuclear reactors, Germany to spend billions on new gas power plants |url=https://www.politico.eu/article/nuclear-reactors-germany-invest-gas-power-plants-energy/ |work=Politico |date=5 February 2024}}</ref>

Speaking at the [[2023 United Nations Climate Change Conference|COP28 climate summit]] in [[Dubai]] in December 2023, German Chancellor [[Olaf Scholz]] called for a [[Fossil fuel phase-out|phase-out of fossil fuels]], including [[coal]], [[Petroleum|oil]] and [[natural gas]], and reiterated Germany's commitment to be [[Net zero emissions|climate neutral]] by 2045, saying, "The technologies are there: wind power, photovoltaics, electric motors, green hydrogen."<ref>{{cite news |title=COP28: Germany's Scholz calls to phase out coal, oil and gas |url=https://www.dw.com/en/cop28-germanys-scholz-calls-to-phase-out-coal-oil-and-gas/a-67614763 |work=Deutsche Welle |date=2 December 2023}}</ref>

In April 2025, the German government cut its economic growth forecast for 2025 to zero, citing the impact of US President [[Tariffs in the second Trump administration|Donald Trump's trade policies]]. The United States is Germany’s largest trading partner, and Habeck said Trump’s tariffs were going to hit the German economy harder than other nations because it is so reliant on exports.<ref>{{Cite web |title=Germany sees zero growth in 2025, blames Trump tariffs – DW – 04/24/2025 |url=https://www.dw.com/en/germany-sees-zero-growth-in-2025-blames-trump-tariffs/a-72338707 |access-date=2025-04-24 |website=dw.com |language=en}}</ref>

===Immigration===
{{See also|Immigration to Germany}}
In October 2023, Economy Minister [[Robert Habeck]] called for more immigration to Germany, saying the shortage of skilled workers was the country's "most pressing structural problem".<ref>{{cite news |title=Germany calls for more immigrants to fix its shrinking economy |url=https://www.ft.com/content/de913edd-71d1-4a36-b897-091125596952 |work=Financial Times |date=11 October 2023}}</ref> Net immigration to Germany was 663,000 in 2023, down from a record 1,462,000 in 2022.<ref>{{cite news |title=Germany: Net immigration sinks sharply in 2023 |url=https://www.dw.com/en/germany-net-immigration-sinks-sharply-in-2023/a-69489487 |work=Deutsche Welle |date=27 June 2024}}</ref>

===Poverty===
{{excerpt|Poverty in Germany}}

===Homelessness===
{{excerpt|Homelessness in Germany}}

===Climate change===
{{excerpt|Climate change in Germany|Economic effects}}