Is Germany's economy in need of a stronger boost than just a cup of coffee?

Verena Pausder, a successful German entrepreneur and chair of the German Start-up Association, believes that Germany is missing out on future opportunities due to its unwillingness to take risks. Germany's economy shrank by 0.3% last year, and while it managed to avoid a recession, most economists predict that it will enter one soon. The country's growth is being hindered by factors such as the energy crisis caused by the war in Ukraine, higher interest rates, aging infrastructure, a labor shortage, and the cost of addressing climate change. However, Pausder highlights that despite the downturn, there were still 2,489 start-ups founded last year, and Germany is making progress in transitioning to green energy. One obstacle to growth is that Germany's pension funds, which are worth over $700 billion, are not allowed to invest in venture capital and private equity. Pausder argues that Germany should focus on investing in new ventures rather than clinging to traditional big brands. The decline in foreign demand, particularly from non-EU countries, is a major contributor to Germany's economic woes. Dr. Klaus Deutsch, the chief economist at the German Federation of Industries, explains that Germany's recovery depends on the economic performance of the US and China. The manufacturing sector, which employs around 16% of the workforce, is experiencing a downturn, driving pessimism among German consumers. Prices are rising, causing people to hold back on spending. This sentiment is reflected in the latest consumer sentiment survey, which shows that Germans are saving rather than spending due to fear and uncertainty. Despite the shrinking economy, employment levels have been increasing, suggesting lower productivity. The rise of the far-right AfD party is attributed to economic dissatisfaction. Business leaders argue that Germany needs to attract talents and innovate to boost the economy. Companies like SAP are investing in technology to overcome challenges and stay competitive. Germany's struggle for economic growth is seen as an opportunity for innovation and investment.