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Why the Rhine drought is bad news for Germany’s recovery

Germany’s inland waterways still move around 5% of the nation’s goods. With the Rhine at a critically low level, DW explores how the drought is hitting the economy where it hurts most.

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A critical drought has plunged the Rhine River into unprecedented low water levels, posing a severe threat to Germany's economic recovery. The river, a lifeline for transporting goods vital to the nation's industry, has seen water levels plummet to critically low levels, with the shallowest stretch near Kaub dropping to just 16 centimeters.

This is dangerously low, as vessels typically require a minimum of 40 centimeters to navigate safely. As a result, ship operators are drastically reducing cargo loads, in some cases to as little as one-fifth of normal capacity. This crisis is particularly alarming as it coincides with a host of economic challenges for Germany, including weak growth, high energy costs, and fading industrial competitiveness.

The Rhine, responsible for transporting around 5% of goods in Germany, is crucial for moving bulk materials such as iron ore, coal, sand, and petroleum products. It accounts for approximately 40% of freight by ton-kilometers between the Port of Rotterdam in the Netherlands and the German-Swiss border, according to Eurostat. A prolonged disruption could result in a 0.4% drop in Germany's GDP, effectively erasing the country's economic growth for the year.

Experts warn that the crisis could lead to significant losses, with the steel, chemicals, and energy sectors hit especially hard. Germany's transport minister has announced measures to ease congestion, but the situation highlights the vulnerability of Germany's economy to environmental factors, with climate change experts suggesting such droughts may become more frequent and severe.

Written by urgent.news from DW English (Top Stories)'s reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

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