The economy is mired in a quagmire! Factory orders in Germany fell by 5.4% before the general election, marking the biggest drop in three months.

German factory orders fell by the largest margin in three months, highlighting the struggles of the industry in the weeks leading up to Chancellor Scholz's election. Data shows that demand in November dropped by 5.4% compared to the previous month, far below economists' expectations of a 0.2% decrease. The German Federal Statistical Office stated that excluding large orders, this number would increase by 0.2%. Since 2022, the German industry has been putting pressure on the overall economy, with cyclical problems increasingly giving way to structural issues such as labor shortages and high energy costs. The German economy may shrink for the second consecutive year in 2024, with the German central bank forecasting a rebound of only 0.2% this year. This weakness will be the focus of the election on February 23, when Scholz may be ousted by the main opposition leader of the CDU/CSU, Merz. The Social Democrat's term, which began in 2021, has been affected by a series of issues, including the pandemic, a cost of living crisis following the Russia-Ukraine conflict, and weak demand for German products. However, the new Chancellor will also face similar growth obstacles, as the threat of US tariffs on the largest economy in Europe will intensify once President-elect Trump returns to the White House later this month. Preliminary fourth-quarter output figures are set to be announced on January 15. Economists currently predict an economic growth rate of only 0.1% for this period, with the German central bank even warning that the economy is likely to stagnate.