breaking news
The federal government has revised its economic forecast for 2024 significantly downwards: it now expects economic output to decline by 0.2 percent. This would mean that Germany would be in recession for the second year in a row.
The federal government is also expecting a recession this year: the gross domestic product will decrease by 0.2 percent after adjusting for prices in 2024 and will only pick up again next year, said Federal Economics Minister Robert Habeck.
The federal government thus revised its forecast significantly downwards, as in the spring it had still assumed economic growth of 0.3 percent. Last year, the German economy shrank by 0.3 percent after adjusting for prices.
Recovery probably not until 2025
The federal government is a little more optimistic than before for the coming year: it expects an increase of 1.1 percent. On the one hand, she hopes that private consumption will pick up again and more industrial products will be bought abroad. Then German companies would be able to invest more again.
On the other hand, the federal government is relying on its growth package with tax relief, work incentives and electricity price reductions.