- ORIGINAL NEWS
Germany slashes 2024 growth forecast to just 0.2% as economy in ‘tricky waters,’ minister says
- SUMMARY
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.”
- NEWS SENTIMENT CHECK
- Overall sentiment:
negative
Positive
“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.”
Negative
“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.”