Video: Federal government expects growth | STERN.de

STORY: Despite the energy crisis, high inflation and rising interest rates, the federal government believes the German economy is capable of slight growth this year. The gross domestic product is likely to increase by 0.2 percent in 2023, according to the current annual economic report. A decline of 0.4 percent was still expected in the autumn. Federal Minister of Economics Robert Habeck presented his assessments on Wednesday and also had something like self-praise in his luggage. “We now assume that the recession will be shorter and milder, if it takes place at all, than we could have foreseen in the autumn forecast.” “This is the fall economic forecast and you can see how mild it is. It’s still going down a bit here. So it’s still likely that we’re going to get a technical recession. It’s basically flat, fluctuating around the zero line, and then increases for the next year.” “Through this determination, this willingness to make and implement unusual and unusually big decisions, this country managed to ward off a bad economic crisis. And that’s the message of the year ’22, that we made a crisis manageable said that the crisis is of course not over yet, that we are far from over, but that we were able to avoid the worst scenarios.” With inflation, which was at its highest level in decades at 7.9 percent in 2022, the government now expects 6.0 percent this year. So far, seven percent was expected. The economic prospects have brightened up noticeably recently: the Ifo business climate index – which is considered the best leading indicator for the development of the local economy – rose in January for the fourth month in a row. The German economy is starting the new year with more confidence, commented Ifo President Clemens Fuest on the latest survey of around 9,000 executives.

More

source site-1