The finding is not new; For some time now, the declining productivity dynamics, which is not only a phenomenon of the German economy, but at least has parallels in many developed industrialized countries, has been discussed. The explanation mostly used for this refers to the high level of employment; the price for this is a low productivity dynamic. Other factors come into play, namely the consequences of the low interest rate policy, which offered less productive companies a chance of survival that they would otherwise hardly have had (so-called zombification), then the tendency towards over-regulation by companies, which led to the inflating of less productive business areas (e.g. documentation, evaluation, reporting obligations and the like) which reduced the productivity gains in the actual business area, and finally the low investment rate, which points to unfavorable framework conditions (taxes, energy costs, regulation).
Is the German economy stuck in a dead end?
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