Germany witnessed a record-breaking exodus of capital in the past year, as revealed by a study conducted by the Institute of German Economy (IW). The staggering figures hint at a potential onset of deindustrialization, with concerns rising as investors increasingly shun the German landscape, despite recent efforts to attract giants like Intel and Wolfspeed.

According to IW economist Christian Rusche, the outflow of around $132 billion (€125 billion) in 2022, surpassing inbound investments by a significant margin, signals a decline in Germany's allure. Factors such as demographics and soaring energy costs are taking their toll, compounded by internal challenges.

Simultaneously, the housing sector faces a grim scenario, with building approvals witnessing a sharp decline. Recent data from the Federal Statistical Office (Destatis) paints a bleak picture, with only 18,200 new residential units approved in February 2024, marking a substantial 18.3% drop from the same period last year.

Comparatively, the situation appears dire when viewed against the numbers from February 2022, with a staggering 35.1% decrease in building permits. This downward trend encompasses both new constructions and renovations, hinting at broader systemic issues.

In the first two months of 2024, a mere 28,200 new housing units received approval, indicating a concerning 24.9% decline compared to the previous year. Notably, approvals for single-family homes plummeted by 35.1%, underscoring challenges in the residential construction sector.

With multi-family dwellings also witnessing a notable 21.5% decrease in approvals, concerns mount over the nation's housing crisis.