The German government has slightly revised its economic growth forecast for 2024, increasing it from 0.2% to 0.3%, according to Economy Minister Robert Habeck. This adjustment comes after a previous sharp decrease in the forecast from 1.3% to 0.2% earlier in the year. Habeck cited signs of slight cyclical improvement as the reason for the adjustment, offering a small glimmer of relief after months of economic stagnation.
Habeck explained that production was on the rise due to falling energy prices, leading to a decrease in inflation. This in turn is restoring people’s purchasing power and boosting private consumption. He highlighted that the economy was showing signs of an upturn, especially in recent weeks. However, he emphasized that structural changes would be necessary for sustained higher growth rates in the future, including strengthening innovation and reducing bureaucratic obstacles to encourage more work and productivity.
The government is expecting an inflation rate of 2.4% for 2024, which is projected to decrease to 1.8% in 2025. Despite these positive developments, questions remain about whether Germany’s economic model is sustainable in the long term. Structural adjustments and policy changes may be necessary to ensure continued economic growth and stability.
Economic Minister Robert Habeck has announced that Germany’s economic growth forecast for 2024 has been slightly revised from 0.2% to 0.3%. This change comes after a previous sharp decrease in the forecast from 1.3% to 0.2% earlier in the year.
According to Habeck, signs of slight cyclical improvement are behind this revision, providing some relief after months of economic stagnation.
Habeck explained that falling energy prices were driving production upwards, leading to a decrease in inflation and restoring people’s purchasing power, boosting private consumption.
Despite these positive developments, structural changes will be necessary for sustained higher growth rates in the future, including strengthening innovation and reducing bureaucratic obstacles that discourage work and productivity.
The government is projecting an inflation rate of 2.4% for next year and expects it will decrease to
