• Mon. Jun 24th, 2024

Germany’s Economic Slowdown: A Collective Diagnosis by Five Leading Research Institutes

BySamantha Jones

Mar 27, 2024
Economic growth for Germany cut by experts

German Economic Research Institutes Lower GDP Forecast

Five leading economic research institutes in Germany have revised their previous growth forecast from 1.3% to just 0.1%, citing factors such as low domestic demand and high gas and electricity prices impacting exports. These economic think tanks issued their biannual “collective diagnosis” of the German economy, highlighting the importance of consumer purchasing power in improving the economic outlook.

The report revealed that the German economy is experiencing weakness with growth forces dwindling. Economic and structural factors are contributing to sluggish overall economic development. Despite a recovery expected to start in the spring, the momentum is not anticipated to be significant. One of the significant factors affecting the German economy is high energy prices, making energy-intensive goods less competitive, despite being a strength of the country’s economy. Another factor is the government’s strict fiscal policy, which prepares to adhere to the constitutional debt brake regulations limiting new debt issuance. This has led Germany to have one of its lowest-performing major economies worldwide last year. However, growth is expected to improve in the coming year, with a forecast predicting a 1.4% increase. The collaborative report was compiled by five research institutes: DIW in Berlin, IfW in Kiel, IWH in Halle, RWI in Essen and Ifo in Munich

By Samantha Jones

As a dedicated content writer at newszxcv.com, I bring a passion for storytelling and a keen eye for detail to every piece I create. With a background in journalism and a love for crafting engaging narratives, I strive to deliver informative and captivating content that resonates with our readers. Whether I'm covering breaking news or delving into in-depth features, my goal is to inform, entertain, and inspire through the power of words. Join me on this journey as we explore the ever-evolving world of news together.

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