German economic institutes cut growth forecast for 2024 to 0.1%
March 27, 2024
A group of leading economic think tanks has released its biannual “collective diagnosis” of the German economy for the beginning of 2024 on Wednesday.
Titled “The struggling German economy – debt brake reform is not a cure-all”, the report revised the growth forecast for 2024 from 1.2% to near stagnation at 0.1% for the year.
“Germany’s economy is in difficulty. A phase of economic weakness that persisted until recently is accompanied by diminishing growth forces. Both economic and structural factors are therefore superimposed on the overall slow economic development,” states the summary of the report.
He predicted that the situation would begin to improve soon, but also warned that this dynamic would not be “so good” overall.
The report states that consumers and the recovery of their purchasing power, as inflation slows and wages increase in many sectors, would be “the most important fuel for economic recovery”.
Source: DW
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