Deutschland's Data Spells Decline

The German economy faces significant challenges, being the only G7 nation expected to contract this year. Factors such as the energy crisis and weak demand in China contribute to this downturn. Despite these issues, there is optimism among big businesses, with expectations of a soft landing and resilience in the economy. Unemployment is low, but this is partly due to a shrinking labor force. Long-term growth is uncertain, especially with external threats like Biden's inflation reduction act. The question arises whether Germany, Europe's economic engine, could become its 'sick man'.

What concerns are raised about the long-term growth of the German economy?

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What question does the text pose about the future of Europe's economy?

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