Sun. Jun 16th, 2024
Economic growth forecasts for Germany lowered by experts due to economic struggles

In recent news, five economic research institutes in Germany have reduced their GDP outlook for the country. The forecasts were part of their six-monthly “collective diagnosis” of the German economy. According to the report, low domestic demand and the impact of high gas and electricity prices on exports are to blame for this downward revision.

The initial growth forecast of 1.3% made last autumn has now been revised down to just 0.1%. Experts emphasize that consumer purchasing power is critical in improving the economic outlook. They note that the German economy is currently facing challenges, with weak growth forces and economic factors contributing to sluggish overall progress.

The report highlights that domestic demand has not increased as anticipated due to high gas and electricity prices, which have affected the competitiveness of energy-intensive goods, an area where Germany typically excels. Additionally, the government’s strict fiscal policies, aimed at adhering to the constitutional debt brake, have limited its ability to issue new debt and support economic growth.

Despite these challenges, next year’s forecast anticipates growth to increase to 1.4%. The insights from five leading economic research institutes in Germany provide a comprehensive analysis of the current state of the country’s economy and the factors influencing its performance. DIW in Berlin, IfW in Kiel, IWH in Halle, RWI in Essen, and Ifo in Munich all contributed to this report.

By Aiden Nguyen

As a content writer at newscholarly.com, I delve into the realms of storytelling with the power of words. With a knack for research and a passion for crafting compelling narratives, I strive to bring forth engaging and informative articles for our readers. From decoding complex concepts to unraveling current events, I aim to captivate and educate through the art of writing. Join me on this journey as we explore the ever-evolving landscape of news and knowledge together.

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