• Fri. Jun 14th, 2024

Germany’s Economy Faces Long-Term Weakness Despite Potential Spring Recovery

BySamantha Jones

Mar 28, 2024
Economic Growth Forecast for Germany Reduced by Experts due to Weakness

The German economy is facing a prolonged period of economic weakness, with experts citing structural factors and sluggish overall economic development as contributing to this weakness. Despite a potential recovery in the spring, the report suggests that the overall momentum might not be significant. One of the factors impacting Germany’s economy is the lack of increase in domestic demand, partly due to high gas and electricity prices. These prices have caused a loss of competitiveness for energy-intensive goods, which are a strength of Germany’s exports. Additionally, the government’s strict fiscal policy, as a result of provisions for the constitutional debt brake, has limited the issuance of new debt.

Five economic research institutes in Germany have downgraded their GDP forecast from 1.3% to 0.1%, citing reasons such as low domestic demand and high gas and electricity prices affecting exports. The report emphasized the importance of consumers’ purchasing power in improving the economic outlook. The DIW in Berlin, IfW in Kiel, IWH in Halle, RWI in Essen, and Ifo in Munich were involved in creating this collaborative effort on diagnosing Germany’s economy performance last year. Notably, Germany’s economy was the worst performing major economy worldwide last year and is predicted to grow at 1.4% next year according to forecast for following year growth pick up slightly better than previous one but still slow growth rate is predicted by experts .

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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