Volker Wieland: Home-grown problems hamper economic growth in Germany (Kauppalehti)

According to Prof. Volker Wieland, many of the obstacles hampering the growth of the German economy are "homemade". In an interview with the Finnish newspaper "Kauppalehti", he describes how the rise in interest rates is affecting economic performance and where the most pressing problems lie.

According to Volker Wieland, the rise of interest rates has had a strong negative effect on housing loans, house prices and new construction. "Yet the main concern is high inflation and it is understood that the central bank needs to act to bring it down," he said in an interview. However, in his view, "in terms of the overall economic stagnation, the bigger drag for German industry and economic activity overall are the consequences of the war and high energy prices." The energy-intensive sector, which is significant, has decline by 20%.  
At the same time, Wieland identifies a number of "homemade problems": excessive regulation, excessive bureaucratic load on business, insufficient digitalization, high taxation, scarce personnel and difficulty moving towards a more rational immigration policy that focuses on getting skilled workers from abroad into jobs in Germany. In his opinion, these are the most pressing issues. At the same time, he points out the advantages from which the German economy can benefit. There are still many successful and adaptible companies, a well-trained workforce, Wieland said.

Kauppalehti: "Kohta alkavat koronlaskut" (€)