As of: March 27, 2024, 10:00 a.m
By: Marcel Reich
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Economics Minister Robert Habeck (Greens) has a lot of work ahead of him.
© Michael Kappeler/dpa
Economic output in Germany will be over 30 billion euros lower as a result of the delayed recovery.
Private consumption is becoming the most important driving force for the economy.
Munich – The five most renowned economic research institutes in Germany view the current economic situation with concern.
They revised their forecast for the current year significantly downwards in their spring report and are now only forecasting economic growth of 0.1 percent.
This was reported by the
Kiel Institute for the World Economy
.
In comparison, 1.3 percent growth was still expected in the autumn report.
The forecast for the coming year remains almost unchanged with an increase of 1.4 percent (previously 1.5 percent).
However, due to the delayed recovery, economic output will be more than 30 billion euros lower.
The report shows that persistent economic weakness is accompanied by declining growth potential.
Economic and structural factors overlapped in the weak overall economic development.
Although a recovery is expected from spring, overall momentum will be rather slow.
Private consumption will be a key pillar of the economy in 2024
Stefan Kooths, head of the economic department at the Kiel Institute for the World Economy (IfW Kiel): “In the current triad of sluggish economic activity, paralyzing politics and suffering growth, only the economic tone changes from minor to major.”
In the current year, private consumption will be the key pillar of the economy, while foreign business will become increasingly important in the coming year.
Economic performance is currently at a level that is only slightly higher than before the pandemic.
Since then, productivity in Germany has stagnated.
There has recently been more resistance than support, both at home and abroad.