As of: March 18, 2024, 8:20 p.m
By: Bona Hyun
Comments
Press
Split
How is the German economy doing?
A recovery is apparently not yet in sight.
There could be a lot at stake for Habeck due to the trend.
Berlin – 2024 will be a difficult year for the German economy.
Economics Minister Robert Habeck (Greens) prepared people for a tough time because things are currently going “dramatically badly.” The economic forecast for the current year has therefore been significantly lowered to just 0.2 percent economic growth.
One thing is clear: Germany needs the upswing.
All eyes are on Habeck.
Economy in Germany: Habeck must succeed in the upswing
First, a look at the economic situation: In the latest report, the Ministry of Economic Affairs writes that there is currently no noticeable economic recovery in sight.
“Weak domestic demand, high financing costs and the still subdued mood among private households and companies continue to speak against a recovery,” the ministry writes in the statement.
Robert Habeck must succeed in the economic recovery.
© Carsten Koall/dpa
In view of the overall still weak indicator situation and the continued high level of uncertainty among private households and companies, most economic research institutes are assuming a further slight decline in GDP in their latest economic forecasts for the first quarter of 2024.
An improvement is only expected as the year progresses.
To Habeck's annoyance: Germany is lagging behind as a business location
Especially in international comparison, Germany performs worse as a business location.
The German economy is developing worse than in the rest of the EU, and fewer and fewer foreign investors want to put down roots in Germany.
According to a survey by KPMG, only 58 percent of those surveyed consider Germany to be one of the five most stable EU countries.
In the 2021 survey it was still 80 percent.
According to the
MDR,
the high energy costs in Germany and the bureaucracy undoubtedly make the location less attractive.
High energy prices in particular are causing energy-intensive companies to increasingly look to the United States for future investments.
It is expected that the energy supply there will remain particularly inexpensive over the next few decades, explained Klaus Günter Deutsch, head of the research, industrial and economic policy department at the Federation of German Industries, to
MDR.
But there is still hope, because some companies, such as Intel, Tesla and now Microsoft, are still showing interest.
They have confidence “in the work of this government to attract such investments,” said Brad Smith of Microsoft Corporation at a press conference.
My news
A four-year-old has a tumor in his head – parents ask for help reading
Up to 30 centimeters: Where it's supposed to snow a lot on the weekend read
“Stunned after all the rumors”: Princess Kate surprises with public appearance
Deaf to noise: Three US nerds declare war on Putin with a cheap drone read
No longer available: Aldi is taking the entire product category off its shelves
Habeck wants to have gas networks shut down: What that means for consumers read
Habeck with plans to improve the economy – will the recovery succeed?
Habeck has already initiated several plans to save Germany as a business location.
The Minister of Economics is working on measures to counteract the labor and skilled labor shortage in Germany.
In order to achieve this, “several screws have to be turned,” Habeck told
Handelsblatt
.
In addition, the Federal Minister of Economics plans to integrate people with a migration background more quickly into the German labor market.
The draft annual economic report therefore also aims to reduce bureaucratic hurdles.
This is intended to help “progress more quickly and effectively in the labor market integration of refugees”.
Habeck is optimistic about the climate target in Germany
Another matter close to Habeck's heart is Germany's climate protection efforts.
Habeck is also optimistic in this regard.
The federal government considers the climate target set for 2030 to be achievable based on current forecasts for greenhouse gas emissions.
“For the first time ever, the numbers show: Germany is on track – for the first time,” said Habeck on Friday (March 15) in Berlin.
According to the Federal Environment Agency, the greenhouse gas projections for 2024 show a decrease of almost 64 percent by 2030 compared to 1990.
From the Ministry of Economic Affairs' perspective, this makes the climate target for 2030, which calls for a reduction in greenhouse gas emissions by at least 65 percent, tangible.
Nevertheless, time is running out for Habeck: If the economic recovery does not come by 2025 at the latest, things will be tight for Habeck and his party in the election year, the
Wirtschaftswoche
makes clear in an analysis.
(bohy)