Germany slipped into a technical recession earlier this year as the export heavy country struggles with a weaker manufacturing sector, high inflation, and a war on its doorsteps.

At the same time, the country is contending with multiple immense transitions.

It's aiming to rapidly decarbonize energy production,

and its prized auto industry is rotating from combustion engines to electric.

If that weren't enough, its relationship with China... from combustion engines to electric.

If that weren't enough, its relationship with China,

a key source of growth in a critical export market,

is under pressure.

So how are German companies and investors

adapting to the macro and market pressures.

Given the amount of investment required to transition this economy in particular its

industrial base into a more sustainable renewable energy world. It's massive.

It's massive investment and it's massive investment not only at the microside,

I. E. the company side, but also on the micro site, i. I'm Allison Nathan Wolfgang Fink,

CEO of Goldman Sachs for Germany and Austria.

Wolfgang, welcome back to the program.

Thank you. Thank you for having me again.

So let's start with some macro context.

Germany's underperformance has been one of the years more notable surprises on the macro side.

Why is the country finding itself in a weaker position?

Yeah, listen, I think part is what we're experiencing globally, the inflationary pressures that are

weighing on the economy and on the consumer.

...