The UK-based magazine The Economist published an article titled "The German Economy Is So Bad That Even Sausage Factories Are Closing." Using the Germans' fondness for sausages as a symbolic example, the article conveys the message, "If even sausage factories are closing, imagine the rest." The same magazine had declared Germany the "sick man of Europe" in 2023. But is the situation in Germany really that bad?

Let's evaluate the situation based on five key economic indicators over the six-year period from 2020 to 2025, following the start of the pandemic in 2019. We'll compare data from Germany and France, the two largest economies in the EU, with data from the United Kingdom, where The Economist is headquartered. Ultimately, these are the three largest and most comparable economies in Europe, with relatively similar land area and population. The figures below are rounded values ​​based on data published by official institutions, and there may be limited methodological differences between years and countries.

Germany's problem is its greater reliance on industry and exports compared to other countries. Weak global demand, primarily from China, and declining exports, coupled with high production costs (energy, wages), industrial contraction, especially in Germany's leading automotive sector, the US-China rivalry, and low investment, have put pressure on small and medium-sized enterprises (SMEs) in Germany in 2024-2025. However, Germany remains the largest European economy. It is a significant exporter and manufacturing hub, possesses a vast network of SMEs, has a low unemployment rate, more controlled public debt than France and Italy, and a stable financial system. It also enjoys advantages such as high income and employment levels. Therefore, bankruptcy rates do not reflect the complete picture.

Data shows that France and the United Kingdom are in a more unfavorable situation than Germany in many indicators. Nevertheless, The Economist's focus on Germany is likely due to Germany's role as a "reference country" in the European economy. Germany is not in collapse; it is simply experiencing the pains of a model change.