German Finance minister claims citizens getting poorer
(MENAFN) Germany is facing economic challenges that are eroding its prosperity, with Finance Minister Christian Lindner asserting that the country's inability to generate economic growth is making it poorer. Speaking at a Bloomberg event in Frankfurt, Lindner, who also leads Germany's Free Democratic Party, highlighted the consequences of a prolonged period of little or no expansion for the European Union's economic powerhouse.
Lindner expressed concerns over Germany's competitiveness, stating, "We are no longer competitive. We are getting poorer because we have no growth. We are falling behind." These remarks follow the Organisation for Economic Cooperation and Development (OECD) publishing a pessimistic outlook, slashing its forecast for German growth in 2024 to a mere 0.3 percent. This figure is well below the 2.9 percent anticipated for the G20 and even below the 0.6 percent projected for the Eurozone.
As Germany grapples with economic challenges, upcoming industrial production data, expected to be released later this week, is anticipated to reveal the lowest levels since 2008.
During that period, German industry was significantly impacted by the aftermath of the global financial crisis.
Lindner emphasized the need for the government to draw conclusions from this economic analysis, stating, "It is inconceivable to me that the government does not draw any conclusions from this analysis." He underscored the vital connection between economic prosperity and fulfilling Germany's social obligations, including maintaining the status quo of social security, environmental projects, and increasing spending on the country's external security.
Official preliminary data released by Destatis in January showed a price-adjusted GDP drop of 0.3 percent in the previous year. Additionally, industrial output (excluding construction) contracted by 2 percent, primarily attributed to much lower production in the energy supply sector. The Finance Minister's warnings reflect growing concerns about Germany's economic trajectory and the urgent need for measures to stimulate growth and maintain its status as a global economic powerhouse.
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