Author(s)

Yunqiao Wang ¹

Affiliation(s)

¹ College of Social Sciences, University of Glasgow, Glasgow, United Kingdom

Corresponding Author

Yunqiao Wang

ABSTRACT

Since 2022, Germany has faced prolonged economic weakness alongside major disruptions to its energy supply system. This paper examines how changes in energy availability, structure and cost have affected Germany's economic development between 2022 and 2026. Using a descriptive case-study approach, it analyses trends in GDP growth, inflation, energy prices, corporate insolvencies and manufacturing employment, while also assessing changes in coal, natural gas, oil, nuclear power and renewable energy supply. The findings show that high and volatile energy costs have increased pressure on industrial production, weakened business confidence and competitiveness, contributed to rising corporate insolvencies, and accelerated employment decline in manufacturing. At the same time, Germany's energy transition has reduced reliance on coal and nuclear power and expanded the role of renewable energy, but it has also exposed tensions between decarbonisation, energy security, affordability and industrial stability. The paper argues that an energy transition should not be assessed only by the expansion of renewable capacity. It should also be evaluated in terms of supply resilience, price stability and wider economic consequences. Based on Germany's experience, the paper identifies five policy priorities for other countries: strengthening energy-security awareness, diversifying energy supply, maintaining strategic reserves, accelerating the green transition and promoting technological innovation in energy systems.

KEYWORDS

Germany; economy; energy; supply; policy implications

CITE THIS PAPER

Yunqiao Wang. A Critical Analysis of the Impact of Insufficient Energy Supply on Germany's Economic Development. Financial Engineering and Risk Management (2026). Vol. 9, No. 1, 103-110. DOI: http://dx.doi.org/10.23977/ferm.2026.090110.

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