S7/10Economic

Germany's Economic Model Is Broken, and No One Has a Plan B

The country is focused on exports, but China is slowing imports and U.S. tariff threats are growing. Politicians are offering few alternatives.

27 Jan 2025, 02:00 UTCSource: WSJ World

Click a tag to subscribe via email/Telegram (manage channels in Account).

⚠️ This is a probabilistic forecast, not a guarantee. Accuracy is measured only on resolved scenarios; monitor confirmation indicators below.
A
Escalation54% model probability

Confirmation indicators

  • A sharp decline in German export numbers (e.g., by 10% month
  • month) and rising political tensions between Germany and the U.S. within a month.
Horizon: 7–30 days
B
Status quo34% model probability

Confirmation indicators

  • A sharp decline in German export numbers (e.g., by 10% month
  • month) and rising political tensions between Germany and the U.S. within a month.
Horizon: 7–30 days
C
De-escalation13% model probability

Confirmation indicators

  • A sharp decline in German export numbers (e.g., by 10% month
  • month) and rising political tensions between Germany and the U.S. within a month.
Horizon: 7–30 days