Italy is wiping the floor with Germany this year in terms of GDP growth and is set to outpace it again in 2024, on OECD forecasts.
Spain is expected to grow more than twice as fast as Germany next year, with Greek GDP set to expand at more than three-times Germany’s pace.
It is a far cry from the sovereign debt crisis of a decade ago when, at the worst moments, it looked as though the indebted Mediterranean nations might lead a breakup of the eurozone.
Sandra Horsfield, economist at Investec, says the energy crunch and China’s weak recovery have been particularly painful for Germany.
“Places like Germany are suffering as a result of their particular industrial setup. If you have an economy that is heavily manufacturing-driven, that is a weakness at this particular point,” she says.
Conversely, Holger Schmieding, chief economist at Hamburg-based…
