Germany's Economic Downturn Triggers Political Turmoil Amid Global Pressures
GERMANY: Germany, the world’s third-largest economy, recorded a nominal GDP of $4.7 trillion in 2024, according to the International Monetary Fund. With a population of 84 million, Germany ranks ahead of Japan, the fourth-largest economy, at $4.07 trillion and 124 million people. India follows in fifth place with a GDP of $3.9 trillion and a population of 1.4 billion. While Germany’s population has been increasing at 0.8–1% annually, largely due to immigration from conflict zones like Ukraine, Africa, and Syria, Japan’s population is shrinking by 0.5% annually.
This economic downturn has significant geopolitical implications for Germany and the world. Domestically, it has already triggered political upheaval. Chancellor Olaf Scholz’s government fell after failing to secure a vote of confidence in Parliament last month, leading to early elections scheduled for February instead of September. The collapse of the three-party coalition government, comprising the SDP, the Green Party, and the pro-business FDP, was precipitated by internal tensions and the rising popularity of the far-right Alternative for Germany (AfD).
The AfD, founded in 2013, has gained substantial traction, particularly in Saxony and Thuringia. The party’s platform combines right-wing populism, Euroskepticism, opposition to immigration, anti-climate action, and xenophobic sentiment. Its rapid rise reflects a broader global trend of increasing populist politics fueled by nationalist and anti-immigrant sentiments.
Source: IMF