When Germany coughs, all of Europe catches a cold. The failure of the German engine weighs heavily on the prospects for recovery of European growth which has been at half mast since mid-2023. If some, on this side of the Rhine, may have maliciously rejoiced at the difficulties of our big neighbor, in the long term, concern is growing about the knock-on effect of the crisis of the German model.
However, the hoped-for recovery does not seem to be taking shape. After a decline of 0.3% in GDP last year, it should only increase by 0.1% this year, according to the revised forecast from the five major German economic institutes, published on Wednesday. A drastic correction compared to their November estimate of growth of 1.3%, which is just below the government's own forecast of 0.2% for 2024. Suffice to say that, at the slightest hiccup, a second year of recession cannot be ruled out.
After recording the worst performance of the world's major economies last year…
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