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Macro Picture
Sep 15, 2026

Germany’s Tentative Recovery and the Auto Industry Challenge

Nato Balavadze

In this paper, we discuss:

  • Why Germany’s economic recovery remains fragile despite stronger growth;
  • How structural pressures continue to weigh on German industry;
  • Why the automotive sector is bearing the brunt of industrial adjustment;
  • How Chinese competition is challenging Germany’s industrial model;
  • How German firms are adapting production and investment strategies to remain competitive.

Download PDF: Germany’s Tentative Recovery – September 2026

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