Part 5/9:
The situation is dire for Germany; its GDP shrank for a consecutive second year in 2024 and the forecast for 2025 remains bleak with warnings of prolonged stagnation. Germany, which played a significant role in global trade dynamics, is grappling with the compounded effects of a poor production outlook, weakened exports, and high inventory levels.
The Broader Asian Context: Japan and South Korea
Japan’s automotive industry is facing a similar fate. Since the fall of 2023, exports to the United States began to decline in both volume and value. Following internal struggles, including production halts due to scandals, Japanese manufacturers have found it challenging to regain market footing. As of December 2024, auto production in Japan was down by 11% compared to the previous year.