Submitted by Thomas Kolbe
That Was a Short-Lived Boom.
After just a few weeks, the special economic effect of the closure of the Strait of Hormuz has already evaporated, according to Germany’s Federal Ministry for Economic Affairs. In its monthly report, the ministry states that energy-intensive sectors and companies in German industry benefited from a massive disruption of supply chains in Asia following the closure — a one-time opportunity to temporarily offset the competitive disadvantages at home by shutting out the competition and moving into the business vacuum that had emerged.
Companies in the chemical and metals industries in particular benefited from this special situation, which generated robust growth in the second quarter, the ministry said.
Ultimately, the effect faded faster than expected. After just a few weeks, the German economic miracle was over — and the gray reality has returned. According to the ministry, the German economy continues to lack growth impulses. The stagnation is therefore continuing.
Bad news for the German government, and even worse news for Chancellor Friedrich Merz, who is desperately hoping for economic figures he can use as campaign ammunition rather than going into the next election with completely empty hands when voters hand him another political rebuke in just a few days. Pressure on the unpopular chancellor is also growing within his own party. Merz should actually be delivering something substantial by now — after more than a year of his debt orgy. He should be spreading hope of an impending upswin
