German government raises economic forecast slightly
Published: Wednesday, Apr 24th 2024, 14:41
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The German government has slightly raised its economic forecast for this year. There are increasing signs that the economy will reach a turning point in the spring, the Ministry of Economic Affairs announced in Berlin on Wednesday.
Growth of 0.3 percent is now expected. In February, the government drastically lowered its forecast - to an increase in gross domestic product of just 0.2%.
Economics Minister Robert Habeck (Greens) said that the ministry sees signs of a slight economic upturn over the rest of the year. Inflation is continuing to fall. According to the forecast, the rise in consumer prices is likely to fall from 5.9 percent last year to 2.4 percent in the current year.
This strengthens people's purchasing power and supports the recovery in private consumption. The German government expects growth of 1.0% for 2025.
The Minister of Economic Affairs spoke out in favor of reforms in view of the structural problems of the location. Innovation must be strengthened, unnecessary bureaucracy reduced and the labor shortage tackled with determination.
Business associations have been calling for significant relief for companies for some time. Habeck had also already spoken out in favor of a growth package. A twelve-point paper from the FDP had caused a stir with demands for relief for the economy and restrictions on the welfare state. This was met with strong criticism, particularly from the SPD.
©Keystone/SDA
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