Federal Minister of Economics Habeck speaks of a remarkable development: The German economy is proving to be resilient – the federal government has revised its economic forecast upwards accordingly.
The federal government has slightly increased its economic forecast for this year. “After the Corona crisis, the German economy is proving to be adaptable and resilient, even in the energy crisis,” said Economics Minister Robert Habeck. He spoke of good news.
According to the current spring projection, the federal government now expects an increase in gross domestic product of 0.4 percent for this year. In January, she had assumed 0.2 percent.
Economic indicators such as industrial production, incoming orders and business climate indicated an economic revival in the further course of the year, it said. According to forecasts, the economy is expected to grow by 1.6 percent in the coming year.
Gradual recovery despite difficult environment
The Federal Government’s support and stabilization measures to cushion the increased costs of companies and the loss of purchasing power in private households prevented a stronger slowdown in the winter half-year, the ministry announced. There was talk of a gradual recovery despite a difficult environment.
Inflation has also peaked. After a rate of 6.9 percent last year, the federal government is assuming 5.9 percent this year and 2.7 percent next year.
The spring projection forms the basis for the new tax estimate in May. Last year, the federal government also feared a recession this year as a result of the Ukraine war. However, there was no escalation of the energy price crisis.