Germany’s Gradual Economic Rebound: Minister of Economy Robert Habeck Discusses Challenges and Opportunities

In Berlin, Minister of Economy Robert Habeck presented the traditional spring forecast, acknowledging signs of a gradual economic rebound emerging from a period of weakness. While there are improvements, Habeck emphasized the need to focus on enhancing Germany’s competitiveness, given the country’s lag in terms of international competitiveness and structural challenges.

The German government anticipates a slight recovery in the economy, attributing it to factors such as lower inflation, monetary easing, and global economic growth. These conditions are particularly beneficial to Germany’s export-oriented economy. As a result, the German Ministry of Economy has slightly increased its economic growth forecasts from 0.2% to 0.3% for the current year and expects a growth of 1% in 2025.

However, despite the positive outlook, German industry remains cautious, with expectations of a further decline in production for the current year. Both the Federation of German Industry (BDI) and the German Chamber of Commerce and Industry (DIHK) highlight the need for urgent improvements in economic framework conditions to support the economy.

The International Monetary Fund (IMF) recently revised its growth forecast for Germany downwards, reflecting concerns about the country’s economic performance compared to other G7 Western industrialized nations. The German economy is seen at a turning point, with signs of improvement emerging after a period of stagnation