Economic situation: Germany is stagnating – economic forecast falls drastically – economy

The economy is stagnating. Instead of 1.3, it is only expected to grow by 0.2 percent in 2024. Robert Habeck calls this “really dramatically bad.” Economists warn: The situation is serious.

Federal Economics Minister Robert Habeck (Greens) is only expecting growth of just 0.2 percent for the current year. This is what is forecast in the annual economic report, which is due to pass the cabinet next week, said Habeck on the sidelines of a craft fair in Leipzig. “That’s really dramatically bad,” admitted Habeck. He cited the Federal Constitutional Court’s ruling on the Climate and Transformation Fund from last November as the main reason. The government then discontinued various support programs, including energy price caps. The latter were originally supposed to continue until March 2024, but instead they expired at the turn of the year. As a result, the reduction in network fees from public funds was also eliminated. The bottom line is that many households would have less money available, said Habeck in Leipzig. “Lack of money has a direct impact on growth,” he said. “We have reduced the economy by a few percentage points.”

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