Germany demotes economic prediction
Date
10/12/2024 8:19:09 AM
(MENAFN) Germany's economic landscape is facing significant challenges, as the country's Ministry for Economic Affairs announced a revised forecast projecting a 0.2 percent decline in gross domestic product (GDP) for 2024. This marks a stark downgrade from the previous estimate of a 0.3 percent growth, signaling a troubling trajectory for Europe's largest economy. The anticipated downturn in 2024 will follow a contraction of 0.3 percent in the previous year, indicating a concerning trend of recession.
In a statement released on Wednesday, the ministry highlighted early indicators, including industrial production and the business climate, which suggest that economic difficulties are persisting into the latter half of 2024. According to Economy Minister Robert Habeck, the challenges facing Germany have been compounded by long-standing structural issues, further exacerbated by broader global economic conditions.
Habeck pointed out that the country has not experienced significant economic growth since 2018, emphasizing the urgent need for Germany to navigate the pressures imposed by competing economic powers such as China and the United States. “Germany’s structural problems are now taking their toll,” he noted, underscoring the critical need for the nation to adapt and assert itself in this challenging environment.
Looking ahead, the minister has projected a potential rebound in 2025, with an anticipated GDP growth of 1.1 percent, slightly higher than earlier predictions of 1 percent. Habeck expressed optimism about Germany's inherent strengths and emphasized that if the government's support measures are fully implemented, the economy could experience a stronger recovery, leading to increased employment opportunities for the populace.
As Germany grapples with these economic challenges, the government's strategic responses and support initiatives will be crucial in determining the future trajectory of the economy, particularly as it seeks to overcome the obstacles presented by both internal and external pressures.
MENAFN12102024000045015687ID1108772483
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.