Germany calls for more immigrants to fix its shrinking economy

The Financial Times: Germany calls for more immigrants to fix its shrinking economy. Germany’s economy is in a precarious position, contracting 0.4% this year, according to revised government forecasts. Economy Minister Robert Habeck attributes the downturn to an energy crisis prompted by Russia’s invasion of Ukraine, rising interest rates to counter inflation, and declining global trade. As a solution, Habeck is advocating for an influx of skilled immigrants to fill a “desperate” workforce gap that is causing businesses to turn down orders and cut operational hours. The issue is not limited to skilled workers; Germany is facing a broad labor shortage. Despite the bleak outlook, Habeck predicts an economic rebound led by lower inflation and rising wages, estimating growth of 1.3% in 2024 and 1.5% in 2025.

The country’s dependence on Russian oil and gas, disrupted by the Ukraine conflict, has sent energy bills soaring, eroding public support for the ruling coalition. The slowing economy is also affecting Germany’s trade with China, its major trading partner, and causing a contraction in the industrial and construction sectors. To counter these trends, Habeck calls for reducing bureaucratic hurdles to stimulate investment. He also addresses the public concern over illegal immigration, stating that the real crisis is the scarcity of skilled workers and suggesting that refugees could help fill these roles, under controlled conditions.

The entire article can be read at the link https://www.ft.com/content/de913edd-71d1-4a36-b897-091125596952