Made-in-Germany growth engine falters

Taking a hit: An employee checks a vehicle at VW’s plant in Dresden. Pandemic jolts to economies everywhere are throttling even a Germany Inc brand built on efficiency and a reputation for precision and durability. — AFP

FRANKFURT: The engine of the German economy is turning into a brake in the face of a global supply crunch, threatening to derail the nation’s recovery.

While its strong focus on manufacturing helped Europe’s largest economy fare better than its more service-heavy peers in the region during Covid-19 lockdowns, Germany’s rebound is now at risk as companies report shortages of materials ranging from memory chips to lower-tech parts and even basics such as wooden pallets.