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Leading economic research institutes have presented their new economic forecast (symbolic image).
© Bernd Weißbrod/dpa
The German economy is ailing, according to the spring forecast from economic experts.
What does that mean specifically?
Berlin - Leading economic research institutes have significantly lowered their economic forecasts.
You spoke of “headwinds” for the German economy from home and abroad.
“The economy in Germany is ailing.”
The institutes only expect mini-growth of 0.1 percent for the current year.
In the fall they had assumed that gross domestic product would increase by 1.3 percent in 2024.
For the coming year, the institutes are leaving their forecast almost unchanged at plus 1.4 percent.
Recovery possible in spring
The German economy is ailing, according to the spring forecast.
In 2023, economic output in Europe's largest economy fell by 0.3 percent.
According to institutes, economic performance is currently at a level that is barely higher than before the corona pandemic.
“Since then, productivity has stalled.”
According to the institutes, a tough phase of economic weakness is accompanied by dwindling growth forces.
Although the economy is likely to begin to recover from spring onwards, the overall momentum will not be too great.
In the current year, private consumption is becoming the most important driving force for the economy, and in the coming year, foreign business will also increase.
The German Institute for Economic Research in Berlin, the Kiel Institute for the World Economy, the Leibniz Institute for Economic Research in Halle, the Leibniz Institute for Economic Research in Essen and the Ifo Institute in Munich are involved in the so-called joint diagnosis.
dpa