Germany Lowers Economic Growth Outlook
Germany, the EU's economic powerhouse, is facing difficulties due to structural issues and broader global challenges, according to the country's economy ministry. Read Full Article at RT.com.
TroibNews 
Germany's gross domestic product is projected to decrease by 0.2% in 2024, as per a revised forecast released by the government on Wednesday. This revision represents a significant downgrade from the earlier estimate of a 0.3% growth.
This adjustment will mark the second consecutive year of recession for the EU’s economic leader, following a contraction of 0.3% last year.
The German ministry for economic affairs indicated that early indicators, including industrial production and the business climate, imply that the economic decline persisted into the latter half of 2024.
According to Economy Minister Robert Habeck, the nation has not experienced robust growth since 2018, as its structural issues have been compounded by broader global challenges.
“Germany’s structural problems are now taking their toll. In the middle of the crises, Germany and Europe are squeezed between China and the US, and must learn to assert themselves,” Habeck remarked, as reported by various media outlets.
Looking ahead to 2025, the minister anticipates a GDP increase of 1.1%, slightly exceeding the government's previous estimate of 1%. “Germany is a country full of strengths,” Habeck noted, asserting that if government support measures are “fully implemented, then the economy will grow more strongly and more people will find employment again.”
Meanwhile, German Finance Minister Christian Lindner criticized the government's economic strategy, telling the DPA news agency: “Our economy has been shackled for years by bureaucracy and the tax burden, but – frankly – also by centrally planned economic measures to fight climate change and an increasing policy of redistribution.”
Over recent years, the Eurozone’s largest economy has lagged behind its counterparts, mainly due to a persistent downturn in manufacturing. Notably, Germany was the only G7 economy to experience a contraction in 2023.
Aarav Patel for TROIB News
This adjustment will mark the second consecutive year of recession for the EU’s economic leader, following a contraction of 0.3% last year.
The German ministry for economic affairs indicated that early indicators, including industrial production and the business climate, imply that the economic decline persisted into the latter half of 2024.
According to Economy Minister Robert Habeck, the nation has not experienced robust growth since 2018, as its structural issues have been compounded by broader global challenges.
“Germany’s structural problems are now taking their toll. In the middle of the crises, Germany and Europe are squeezed between China and the US, and must learn to assert themselves,” Habeck remarked, as reported by various media outlets.
Looking ahead to 2025, the minister anticipates a GDP increase of 1.1%, slightly exceeding the government's previous estimate of 1%. “Germany is a country full of strengths,” Habeck noted, asserting that if government support measures are “fully implemented, then the economy will grow more strongly and more people will find employment again.”
Meanwhile, German Finance Minister Christian Lindner criticized the government's economic strategy, telling the DPA news agency: “Our economy has been shackled for years by bureaucracy and the tax burden, but – frankly – also by centrally planned economic measures to fight climate change and an increasing policy of redistribution.”
Over recent years, the Eurozone’s largest economy has lagged behind its counterparts, mainly due to a persistent downturn in manufacturing. Notably, Germany was the only G7 economy to experience a contraction in 2023.
Aarav Patel for TROIB News
