German economic downturn intensifies, says minister
The German government has struggled to navigate the economic downturn, as acknowledged by Economy Minister Robert Habeck. Read Full Article at RT.com
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Germany's GDP decreased in the second quarter of the year, as indicated by recent data.
Economy Minister Robert Habeck acknowledged the ongoing economic difficulties facing Germany during a press interaction on Tuesday.
Following new data indicating a significant downturn in economic expectations for Germany, Habeck remarked, “The economic crisis is becoming more and more entrenched at a level of stagnation,” according to Bild.
He further noted, “The measures that have been taken so far are not enough to overcome the high interest rates, the lack of demand from abroad, but also the structural problems that we have in Germany.”
Germany, the largest economy in the European Union, experienced a recession last year with a 0.3% contraction, as per data from the German Federal Statistics Office (Destatis). This year, economic activity in Germany is projected to barely grow at 0.1%, stated the European Commission.
The ZEW indicator of economic sentiment in Germany plunged to 19.2 in August, marking a 22.6-point drop from July and recording the sharpest decline in two years. The survey revealed diminished optimism among participants regarding the economic future, with fewer expecting improvements.
ZEW President Achim Wambach commented, “The economic outlook for Germany is breaking down.” He attributed the shift in expectations to “high uncertainty, which is driven by ambiguous monetary policy, disappointing business data from the US economy, and growing concerns over an escalation of the conflict in the Middle East.”
Reports last month from Reuters highlighted that the economic decoupling from Russia has contributed to an economic recession, causing a significant budget shortfall of €17 billion ($18.75 billion) in the federal 2025 budget projections.
In response to the budgetary issues, the German cabinet approved an economic plan in July, which Habeck believes “will have an effect,” he told Bild.
Destatis reported that in the quarter ending June, Germany's economy contracted by 0.1%, following a growth of 0.2% in the first quarter of the year.
Visit RT's business section for additional economic and finance-related news.
Mathilde Moreau for TROIB News
Economy Minister Robert Habeck acknowledged the ongoing economic difficulties facing Germany during a press interaction on Tuesday.
Following new data indicating a significant downturn in economic expectations for Germany, Habeck remarked, “The economic crisis is becoming more and more entrenched at a level of stagnation,” according to Bild.
He further noted, “The measures that have been taken so far are not enough to overcome the high interest rates, the lack of demand from abroad, but also the structural problems that we have in Germany.”
Germany, the largest economy in the European Union, experienced a recession last year with a 0.3% contraction, as per data from the German Federal Statistics Office (Destatis). This year, economic activity in Germany is projected to barely grow at 0.1%, stated the European Commission.
The ZEW indicator of economic sentiment in Germany plunged to 19.2 in August, marking a 22.6-point drop from July and recording the sharpest decline in two years. The survey revealed diminished optimism among participants regarding the economic future, with fewer expecting improvements.
ZEW President Achim Wambach commented, “The economic outlook for Germany is breaking down.” He attributed the shift in expectations to “high uncertainty, which is driven by ambiguous monetary policy, disappointing business data from the US economy, and growing concerns over an escalation of the conflict in the Middle East.”
Reports last month from Reuters highlighted that the economic decoupling from Russia has contributed to an economic recession, causing a significant budget shortfall of €17 billion ($18.75 billion) in the federal 2025 budget projections.
In response to the budgetary issues, the German cabinet approved an economic plan in July, which Habeck believes “will have an effect,” he told Bild.
Destatis reported that in the quarter ending June, Germany's economy contracted by 0.1%, following a growth of 0.2% in the first quarter of the year.
Visit RT's business section for additional economic and finance-related news.
Mathilde Moreau for TROIB News
