Experts warn of China shock 2.0 as government remains passive

By Laura Fleischmann

Published on

28/05/2026 - 10:27 GMT+2

Germany’s economy has been struggling with weak growth for years. In the economic policy debate, this is attributed above all to high costs, a lack of innovation and structural problems that have built up over many years.

Many economists see the main need for reform at home. Ifo president Clemens Fuest, for example, is calling on the federal government, as he told Capital , to implement far-reaching changes to stimulate investment, foster innovation and generate new momentum for growth. What is needed, Fuest says, is "a comprehensive strategy for how Germany can achieve stronger long-term growth".