¿Quo Vadis Germany? A brief comparison between the Spanish and German industry

Summary

The increase in energy prices in 2021, which was exacerbated by the outbreak of the Russian invasion of Ukraine in 2022, has hit the German economy particularly hard, due to the importance of energy-intensive sectors and its energy dependence on Russian gas.

Key points

• Key points:
• Industrial production in Spain has performed better than in Germany since the increase in energy prices in mid-2021.
• However, this fact conceals similar developments by sector: energy-intensive sectors have fallen in both countries, although more so in Germany. Those that have been able to grow, have done so in both Spain and Germany, positively affected by the changes brought about by the pandemic, the boost to environmental sustainability or the recovery of the automotive sector.
• In any case, in 2022 there is a common weakness, which appears to be of a more structural nature.

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