Germany"s Economic Struggles Linked to Immigration Debate

A prominent globalist think tank, the Kiel Institute for the World Economy (IfW), has attributed Germany's economic struggles to the anti-immigration rhetoric prevalent in the country. The IfW has revised its growth expectations for 2025 downward, predicting a rise in unemployment and a deepening recession in manufacturing and construction sectors. Moritz Schularick, the institute's president, emphasized that the ongoing asylum debate is hindering discussions on the necessity of attracting skilled foreign workers, which is crucial for economic growth. Historically, the belief that immigration drives economic growth has been widely accepted in Western discourse. However, recent reports, including one from the UK, challenge this notion, revealing that high levels of immigration do not necessarily correlate with increases in GDP per capita. In the UK, despite a 0.1% growth in GDP amid record immigration, GDP per person fell by 0.8%, indicating a disconnect between population growth and economic prosperity. The IfW's criticism extends beyond public sentiment to include the German government's fiscal policies and the European Central Bank's interest rate decisions. The think tank argues that insufficient migration is a significant factor contributing to Germany's bleak economic outlook. As the debate over immigration continues, the IfW warns that without a shift in perspective towards welcoming skilled migrants, Germany risks further economic decline. The ongoing discussions about border control and immigration policies could have lasting implications for the country's growth opportunities.