HomeFinance NewsEconomyGermany Warns of Economic Storm: Brace for Near-Zero Growth

Germany Warns of Economic Storm: Brace for Near-Zero Growth


Germany slashes 2024 growth forecast to just 0.2% as economy in ‘tricky waters,’ minister says


Germany’s economy is facing challenges, with reduced GDP growth expectations for 2024 and 2025.

Despite avoiding recession in late 2023, the country is grappling with a sluggish global economy, lower world trade, and higher interest rates.

These factors have impacted investments, particularly in construction.

Additionally, the government is facing a budget shortfall due to a recent court ruling.

Germany also faces a shortage of skilled workers and structural issues that could affect its competitiveness in the future.

Despite lower energy costs and rising consumer spending, the country remains in “tricky waters.”

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    “The country narrowly avoided a recession in the second half of 2023, despite its GDP declining by 0.3% in the final quarter as well as for the full-year 2023.”

    “Habeck also addressed the outlook for inflation, saying it is expected to fall to 2.8% throughout 2024, before returning to the 2% target range again in 2025.”


    “Germany on Wednesday said that it was slashing its expectations for gross domestic product growth for 2024 to 0.2%, down from a 1.3% estimate previously.”

    “The country narrowly avoided a recession at the end of 2023 and has faced a series of economic crises.”

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