German Chancellor Olaf Scholz said that growth in Asia, not Russia or the coronavirus, played the main role in the emergence of the current economic downturn in Europe.
Speaking at an economics summit held by the Suddeutsche Zeitung in Berlin on Tuesday, Scholz said countries in North America and Europe have benefited from years of steady growth, low inflation, and high employment rates.
But according to the chancellor, this is an "economic exception" that is not going to last much longer.
"Russia's war against Ukraine and the economic consequences of the COVID-19 pandemic may have hastened the end of this period. However, I must say they were not the triggers," the politician said.
For decades, countries like Vietnam and Indonesia have been seen as sources of cheap goods, mainly for the European, American and Chinese markets, Scholz said.
Asian countries have experienced an explosive increase in the number of middle-class people. The purchasing power of these people increased accordingly. The German chancellor suggested that this was what led to increased inflation elsewhere.
