In presenting this year's "Annual Economic Report" on Germany in Berlin and hoping for a "booster", a "push" towards reforms, German Economy Minister Robert Habeck reiterated that "the German government expects real GDP to grow by 0 .2% in 2024".
This was reported in a text from the ministry despite last autumn the German government forecasting a +1.3%.
The minister predicted a "recovery" during the year.
Even "in the medium term", the German economy is expected to grow by only 0.5 percent per year, the newspaper "Frankfurter Allgemeine Zeitung" reports, citing the report.
Habeck in recent days had already indicated growth of 0.2% a week ago.
“Although negative factors such as the high increase in consumer prices and the resulting loss of purchasing power are easing, geopolitical crises and the tightening of monetary policy are weighing on the expected recovery,” Habeck said.
"However, rising real wages and solid labor market performance should trigger a domestic economic recovery later in the year."
"Germany suffers from structural problems that have accumulated over many years. Now we need a push for reforms", stated the minister in which he indicated "strengthening investment activity" among the ten fields of action identified by Berlin to strengthen competitiveness in a sustainable way.
"The federal government wants to ensure prosperity in Germany while respecting ecological limits," assured the minister.
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