In a press conference addressing the media, German Minister for Economic Affairs and Climate Protection Robert Habeck recently announced the government’s spring projection regarding economic development. The country’s largest economy in the European Union is expected to see a slight improvement in its growth forecast this year, with inflation predicted to decline.
The Economy Ministry has revised its growth forecast for Germany from 0.2% in February to 0.3% in the current year. This increase indicates that the country’s economy may be approaching a turning point this spring. Minister Habeck highlighted that the ministry sees signs of a slight economic upturn throughout the year, with inflation expected to decrease from 5.9% last year to 2.4% in 2024.
This decrease in inflation is expected to help boost household purchasing power and aid in the recovery of private consumption, which will contribute positively to economic growth. Looking ahead, the German government is forecasting a GDP growth of 1% in 2025, indicating optimism for future economic prospects.