Latest news with #Post-WorldWarII
Qatar Tribune
10-05-2025
- Business
- Qatar Tribune
Germany's new leadership inherits a legacy of economic struggles
Post-World War II, Germany stood as the economic powerhouse of Europe during extended periods of time. However, over the last two decades, fundamental headwinds began to accumulate. These included negative demographic trends, excessive regulatory and tax burdens, and the omission to upgrade leading sectors to adapt to the digital age and a rapidly changing global landscape. As a result, Germany's economy has underperformed, with real GDP remaining unchanged in the last 5 years. This compares poorly with the 12.2% expansion for the US, or even the 5% growth for the rest of the Euro Area during the same period. The incoming administration led by Chancellor Friedrich Merz could mark a turning point in economic policy and performance. For decades, Germany has been committed to fiscal discipline and austerity. In contrast, the new government enters the scene with a massive fiscal expansion package that could reach EUR 1 trillion, including infrastructure and defense, together with plans for tax and labor market reforms. The economic package marks a paradign shift from Germany's traditional fiscal conservatism, and will stimulate growth in the medium term. However, the new administration inherits considerable challenges that call for aggressive reforms to sustainably boost the stagnant German economy. In this article, we discuss three key factors that describe the challenges faced by the government and support our outlook. First, significant structural challenges continue to erode competitiveness and productivity. The World Competitiveness Report provides a useful assessment on this dimension across countries. Just a decade ago, Germany was ranked 6th in the world. However, the country has dropped markedly to the 24th position, reflecting regulatory burdens, onerous tax policies, rigid employment laws, and administrative complexity. Excessive bureaucracy costs Germany up to EUR 146 Bn a year. The loss of competitiveness is starkly reflected in productivity statistics: since 2017, output per worker has dropped 2.5%. Business leaders point to the amount of red tape and a glacial pace in moving towards the digitalization age. This is particularly damaging in the case of startups, where bureaucratic delays can make the difference between survival and failure of a project. Because of this, companies are increasingly relocating their business to other European countries, such as Holland, Sweden, Portugal or Poland. Therefore, structural problems will continue to weigh on economic growth and need to be addressed by the new administration with measures that go beyond fiscal stimulus. Second, upgrading outdated infrastructure is critical if Germany aims to achieve a new economic growth phase. Germany's highly conservative fiscal policy has led to an underfunding in key infrastructure areas. Public investment averaged 2.8% of GDP during 2023-2024, compared to 4.3% in France, for example. As a result of low public investment, aging infrastructure for transportation and energy, and lagging digital technology are hindering long-term economic growth, underscoring the importance of substantial upgrades. In previous experiences, procurement and planning have taken more time than actual construction, and there are abundant examples where spending funds have gone unutilised. In 2023, EUR 76 Bn in fiscal resources went unused due to bureaucratic and regulatory hurdles. Thus, an infrastructure upgrade should be one of the priorities for the new government. Furthermore, a plan to reduce corporate taxes would only be gradually implemented starting from 2028. Third, the manufacturing sector, a key sector of the German economy, continues to extend a sustained period of decline that drags on overall growth. Between 2000 and the peak in 2017, the industrial component of real GDP grew at an annual rate of 1.9%. This robust pace reversed dramatically afterwards, as the sector faced a successive series of negative shocks, including global trade tensions, a slowing world economy, theCovid-pandemic, the energy crisis due to the Russo-Ukrainian war, and the decline of the automotive industry. Since its peak in 2017, industrial production accumulates a contraction of 18% in Germany. This year, the new trade wars initiated by President Trump's administration, together with the high levels of geopolitical uncertainty, will put further pressure on Germany's export oriented industries. Although manufacturing should benefit from larger infrastructure investment and defense spending, the new administration will need to secure a more stable environment to offset major headwinds and support growth. All in all, the government inherits a heavy legacy posing significant challenges to growth. The paradigm shift in fiscal policy will contribute to a much-needed upgrade in infrastructure and likely jumpstart a recovery, providing a boost to medium-term growth, but deeper reforms are also needed. — By QNB Economics
Business Journals
05-05-2025
- Business
- Business Journals
Panelists: Manufacturing could resurge in powerful boost for regions
Post-World War II, manufacturing employed nearly a third of U.S. workers and accounted for a similar portion of GDP. Today, those figures are near 8 percent and 10 percent, respectively. Yet Jeff Korzenik, chief economist for Fifth Third Commercial Bank, says manufacturing holds significant potential. 'Every dollar added in manufacturing creates about $3 in GDP,' he said. 'Each manufacturing job generates five to seven additional jobs in the economy. It's a powerful multiplier effect that benefits the entire economy." Boosting U.S. manufacturing by 50 percent poses a promising and even reasonable goal, and strategies employed by some manufacturers already show potential, Korzenik said. At a discussion hosted by the Kansas City Business Journal, sponsored by Fifth Third Bank, and moderated by the bank's Kansas City president, Taylor Dunn, panelists talked about why manufacturing makes such a difference in regional economies, manufacturing myths and realities, and the battle for workers — as well as efficiency. Assembling an economic boost Kansas City-based Orizon Aerostructures, which builds large complex subassemblies for the aerospace industry, opened a facility in Chanute, Kan., in 2016. It began with 30 people and a starting wage of $13 an hour. Less than a decade later, that facility employs nearly 500, with a starting wage close to $22 an hour, said Orizon President Henry Newell. Meanwhile, unemployment in the county went from 7.6 percent to less than 3 percent, he said. In addition, that facility buys many of the smaller components it uses from hundreds of suppliers — a prime example of the multiplier effect of manufacturing on an economy, Newell said. 'Our Chanute facility is a great case study,' he said. If U.S. manufacturing were to grow by 50 percent, Korzenik said, it would mean 5 million direct jobs but 30 million new jobs through the multiplier effect. 'It makes manufacturing so important to a regional economy versus, say, retail jobs, which have virtually no add-on impact,' he said. Kristie Keast, CEO of steel company BlueScope North America, said manufacturing also helps establish a strong community through tangential support services, economic resilience through good jobs, increased consumption and prosperity, and innovation. BlueScope has invested in housing, child care and support services to help bring people back to some of the rural areas in which it operates. expand Steve Sanders A big manufacturing myth Manufacturing suffers from a slew of misunderstandings, panelists said. Among the most prevalent: That it lacks career potential. 'Manufacturing has had a poor perception as quite a dark age, dirty, heavy, heavy industry, which has been a challenge to attract the younger generation,' Keast said. 'So we've done a lot of work in changing that perception, and authentically through cleaner and brighter factories, through progression with technology.' Manufacturers recognize the need to work on their branding, even educating parents and school districts about the realities of modern manufacturing. Partnerships with high schools and colleges help. Through a relationship with Neosho County Community College in Chanute, Newell said, an Orizon-branded room offers training for mechanics in aerospace and defense, without the need to attend a four-year school. The manufacturing workforce also has diversified from the stereotypical rural white man, particularly in attracting more women. 'Manufacturing pay is pretty good, and … it offers a great pathway for people for whom a four-year traditional college degree is not a good fit,' Korzenik said. Aircraft manufacturing, for example, pays better than $55 an hour. Many young people go into retail and leisure/hospitality, but that sector typically offers lower earnings potential, as well as a lower multiplier effect in terms of GDP, Korzenik said. Economies in flux Global shifts likewise have shifted the economics of manufacturing. Over the past couple of decades, manufacturing costs in other countries have risen and their workforces have shrunk. 'The bottom line is, it's not as cheap as it once was to manufacture abroad,' Korzenik said. That boosts the appeal of domestic manufacturing. Similarly, natural disasters and the COVID-19 pandemic have jolted supply chains sufficiently that geographically diversifying or reshoring — bringing manufacturing back to the United States — became important concerns for many businesses. And the United States boasts low and relatively steady energy costs, a key factor for manufacturers. However, the case for U.S. manufacturing isn't perfect, Korzenik said: a labor shortage, lag in adopting automation, significant regulatory burden, and strong dollar pose obstacles, though not insurmountable ones. Automation may lag other countries, but it's growing. Newell said that Orizon now spends its time on upfront engineering processes to create automation so production can run continuously, completely hands off. The company employs artificial intelligence, augmented reality, virtual reality, a classroom with Meta-style glasses, and other technological tools to maximize efficiency. 'This has just really happened in the last two to three years,' he said. Likewise, BlueScope has implemented AI sensors for applications such as sorting or painting, algorithms that make product decisions, predictive analytics, robotics, and other measures, Keast said. 'Some of these trades, like welding, are quite a dying trade, so we have to overcome that,' she said. BlueScope also has altered its prerequisites and expanded its searches for workers, recruiting from a broader array of sectors, such as others that work in shifts — nursing, food processing, food services, the military. 'Rather than expecting people to come with a forklift or a crane certificate, we actually train that in,' Keast said. 'What we were looking for was more people that are safety focused, can problem solve, and that want to be part of a team.' Still, U.S. manufacturers need more workers, and the labor shortage is expected to worsen in the coming years, largely due to immigration policy. 'There's tremendous vulnerability to our labor shortage,' Korzenik said. 'We think that's going to start being felt.' Panelists pointed to countries such as Japan and Australia, which already have had to deal with labor shortages and have tried strategies the United States could consider. Those include encouraging more female labor force participation, facilitating reentry of retirees into the workforce, and establishing guest worker programs.
Forbes
03-05-2025
- Forbes
Why This ‘Secret' Italian Riviera City Should Be On Your Must-See List
The city of Chiavari is located between Portofino and Cinque Terre. The eastern coast of Italy's Riviera, beginning in Genoa and ending at the Tuscan border, ranks among the most famous seasides in the world, with wildly popular resorts like Portofino and Cinque Terre. While there are still uncrowded hamlets to explore, there's also a remarkable, lesser-known Riviera city, Chiavari, that you should add to your must-see list. It's so delightful, authentic and complete as a holiday destination you can't help but wonder why it hasn't yet exploded with international travelers (but are grateful for the fact it hasn't). If your checklist for an ideal summer spot includes a place without mobs of tourists, ample beaches, a variety of cultural attractions, locavore restaurants free of tourist menus, indie boutiques, plus a better-than-average chance of sunny weather (in July and August), head to Chiavari. For centuries this quietly prosperous city—Napoleon made it the capital of the Apeninnes in the early 1800s—relied on maritime commerce, agriculture and furniture production (the Chiavarina chair often used at weddings or for ballroom galas was created here) to swell its coffers. Post-World War II seaside tourism was added to the mix, but without the jet-set flash. Families came to rent apartments or book extended hotel stays during warm-weather months, and somehow managed to keep the destination a 'secret' for themselves. A building facade with trompe l'oeil decorative detail in Chiavari. Olga Bacigalupo, whose family founded and owns one of the principal hotels in town, the Monte Rosa, says her guests are mostly Italian and European, a blend of vacationers that have typically been drawn to Chiavari. While Cinque Terre and Portofino attract the lion's share of international travelers this may be starting to change. Bacigalupo points to events like Chiavari in Fiore (a flower festival) in May and the annual Economic Forum Giannini in April attracting new visitors to the city. But Chiavari seems to be choosing its modern-day tourism path carefully, avoiding situations that can lead to overcrowding, and focusing on cultural events like jazz and theater festivals for peak summer months. In contrast to many tourist-centric destinations, Chiavari lets you feel connected to the city and immersed in its native rhythms simply by strolling the main shopping street, Via Martiri della Liberazione, an arcaded walkway reminiscent of Bologna's porticoed corridors. The arcaded walkways of Via Martiri della Liberazione. (Photo by Paolo Picciotto/REDA/Universal Images Group via Getty Images) Although it can be quiet in the evening (a lot of the restaurant action is along the side streets, like Via Bighetti, and by the sea), Via Martiri is the prime gathering spot come morning whether for shopping or a coffee meet-up, as Chiavarians go about their day-to-day, which includes a mandatory stop at the large open-air food market in the Piazza Mazzini. Here you'll find an exceptional bounty of fruits and vegetables, a good selection of local cheeses and connoisseur vendors who can tell you a thing or two (and do) about selecting the best fennel or asparagus. The last weekend of the month there's a bonus market to visit on the historic Via Rivarola, called Tipicamente Chiavari, with artisanal and DOP produce. The food market in Piazza Mazzini. Beaches face the Gulf of Tigullio. At 1 PM, Via Martiri becomes quiet, a majority of shops close for an hour or more, another sign that even in high season the city remains in sync with the traditions and habits of its year-rounders. Many Chiavarians head home for lunch, although the twenty-ish crowd tends to linger at local bars or caffès for an insalatone or large slice of foccacia. A couple of hours later the town buzzes to life again, and as you get closer to the waterfront, you see people with umbrellas and rolled up mats walking to the sea. A long lungomare flanks a scenic coastline with a mix of public beaches and private lidos (Chiavari beaches have earned Bandiera Blu status). The marina, with 459 moorings, is where you can catch a ferry to Portofino or Cinque Terre. Chiavari is known for its many gracious villas. As you walk around the city, you become aware of its quiet wealth, rooted in other centuries. Set out for the Via Enrico Millo, in a residential area outside the centro storico, where you'll come across gracious Liberty-Style villas, the legacy of the Chiavarians who sailed to South America in the 19th-century to seek their fortunes, and when they found them, came back to enjoy the good life in their hometown. If you look for botteghe storiche (historic shops) when you travel in Italy, Chiavari has a number of them, which like the Liberty villas date from the 19th century, that period of notable prosperity in the city's history. Fans of Caffè Greco in Rome should go to the Gran Caffè Defilla, a place that Rita Hayworth once visited, located on Corso Garibaldi in another arcaded passageway. You can while away the early evening hours outdoors with a Negroni or Spritz (or when the weather is cool, inside in the Art Nouveau-style salon). But you could spend your entire day here: as per its name, Defilla is a caffè with plenty of local pastries to get you started in the morning or revived in the afternoon, but there's also a restaurant and wine store that can have you at Defilla from morning to dusk. The Pasticceria Coppello, in business since 1826 and specializing in local sweets, is another requisite stop. Try the hometown cookie, dolcezze di Chiavari, or pandolce, Liguria's answer to panettone. Visit the historic Panarello for more artisanal sweets; a favorite is the almond cake named after the shop. Inside the Palazzo Rocca, with two important Chiavari museums. (Photo by Isabella Pino/REDA/Universal Images Group via Getty Images) Perhaps because Chiavari is still under-the-radar for many, there's a sense of discovery when seeking out the city's cultural attractions. At the Palazzo Rocca, you can take in thousands of years of Chiavari history at the archaeological museum, which includes Iron Age artifacts excavated from nearby burial grounds. The palazzo has another museum, the Civic Gallery, that provides more recent insights into local history with period rooms and Genovese and Flemish paintings dating from the 17th century. Other highlights include the Palazzo Ravaschieri Museum with a wide-ranging art collection that reaches from the 15th century to the present, and the Risorgimento Museum, one of the country's most important centers for memorabilia from Italy's unification period. Both are located in the the palazzo that's home to Chiavari's Società Economica, a cultural institution founded in 1791 that's long played an important role in the city's artistic and civic life. The Palazzo di Giustizia in Chiavari. The Cattedrale di Nostra Signora dell'Orto dates from the 1600s, and is noted for an ornate frescoed and marble interior. Chiavari's annual celebration honoring its patron saint, Madonna dell'Orto (July 1-3), is a major event in the city with a program of special masses at the cathedral, a heavily attended city-wide procession, and a lavish fireworks display over the sea. The Cattedrale di Nostra Signora dell'Orto. Lodging: In town, the four-star Hotel Monte Rosa is in an ideal location, a short walk from the main shopping street, Via Martiri. This is a welcoming family-run property, with the grandchildren of the founders, Luigia Rocca and Luigi Bacigalupo who started as restaurateurs in 1909, running the 59-room hotel today. The Monte Rosa has a swimming pool and provides a shuttle twice a day to a private beach club. For those who want to stay on the beach there's the Grand Hotel Torre Fara with a swimming pool facing the seaside promenade. A historic gate, once part of the estate of a local marquess, leads to the terrace and pool area at the Hotel Monte Rosa. Dining: Luchin, in business since 1907, is an essential stop for authentic Ligurian cooking. Farinata, minestrone Genovese, vegetable pies and pansotti are among their specialties with many dishes prepared in an ancient wood-fired oven. For fresh fish from the Ligurian Sea and and homemade pastas, there's Da Felice, known for its carefully sourced locavore ingredients. Another restaurant on the water is Ostaia Ca Da Gurpe Al Mare, with well-curated seafood options and great seaside views.
LBCI
20-02-2025
- Politics
- LBCI
Brazil's Lula says Trump wants to be 'emperor of the world'
On Thursday, Brazilian President Luiz Inacio Lula da Silva accused Donald Trump of wanting to "become an emperor of the world", as he called on the U.S. president to respect other countries' sovereignty. Post-World War II democracy has been an example of the best governance of the last 70 years, said Lula in an interview with a local radio station, "but the way (Trump) acts, he is trying to become an emperor of the world." AFP
National News
20-02-2025
- Politics
- National News
Brazil's Lula says Trump wants to be 'Emperor of the World'
NNA - Brazilian President Luiz Inacio Lula da Silva on Thursday accused Donald Trump of wanting to "become an emperor of the world", as he called on the US president to respect other countries' sovereignty. Post-World War II democracy has been an example of the best governance of the last 70 years, said Lula in an interview with a local radio station, "but the way (Trump) acts, he is trying to become an emperor of the world". -- AFP =====================
