Economic growth forecasts for Germany lowered by experts due to economic struggles

Germany’s Economy Faces Sluggish Progress: Forecasts Revised Down Due to Low Domestic Demand and High Energy Prices

Five economic research institutes in Germany have recently reduced their GDP outlook for the country, citing low domestic demand and high gas and electricity prices as the main factors. The forecasts were part of the institutes’ six-monthly “collective diagnosis” of the German economy.

The initial growth forecast of 1.3% made last autumn has been revised down to just 0.1%. The report emphasizes that consumer purchasing power is crucial in improving the economic outlook, but notes that the German economy is currently facing challenges, with weak growth forces and economic factors contributing to sluggish overall progress.

Experts have highlighted that domestic demand has not increased as anticipated, largely due to high gas and electricity prices, which have affected the competitiveness of energy-intensive goods, an area where Germany typically excels. Additionally, the government’s strict fiscal policies aimed at adhering to the constitutional debt brake have limited its ability to issue new debt and support economic growth.

In contrast to last year when Germany’s economy was the poorest performing major economy globally, next year’s forecast anticipates growth to increase to 1.4%. The insights from five prominent economic research institutes in Germany provide a comprehensive analysis of the current state of the German economy and its underlying factors impacting its performance.

Leave a Reply

Chamber of Commerce in Greater Newport announces winners of the 2024 Excellence in Business Awards Previous post Celebrating Exemplary Business Achievements: 18th Annual Greater Newport Chamber of Commerce Excellence in Business Awards
Billie Boullet teams up with Luke Evans and Milla Jovovich for World Breaker Next post Brit-French Actress Billie Boullet Joins Luke Evans and Milla Jovovich in Sci-Fi Survival Thriller ‘World Breaker’