Germany's services sector, vital for its economy, grows despite regulatory challenges and a labor shortage.

Despite facing regulatory hurdles, Germany's services sector, which comprises 70% of its GDP, shows growth potential, expanding 1.6% in the first half of 2022. However, bureaucracy and overregulation hinder small businesses and contribute to a labor shortage, with half of the sector's companies struggling to find workers. Policymakers have mainly focused on the auto industry, neglecting the services sector's needs.

November 11, 2024
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