Economic growth for Germany cut by experts

German Economy Slows Down: Leading Institutes Revise GDP Forecast by 0.1%

In recent years, the German economy has been experiencing a slowdown in growth, with experts predicting a 0.1% increase in GDP instead of the previous forecast of 1.3%. Five leading economic research institutes in Germany have revised their forecast due to various factors such as low domestic demand and high energy prices impacting exports.

According to the report by these institutes, the German economy is facing challenges that are affecting its overall development. The sluggish growth forces are partly due to structural factors such as demographic shifts and changes in consumer behavior. However, experts believe that there is hope for recovery starting from spring, although it may not be significant.

One of the significant factors affecting Germany’s economy is high energy prices, which have made energy-intensive goods less competitive. Despite being a strength of the German economy, energy-intensive goods have faced stiff competition from cheaper imports. Additionally, the government’s strict fiscal policy has limited new debt issuance, making it challenging for businesses to invest in new projects and expand their operations. As a result, Germany had one of the lowest-performing major economies worldwide last year.

However, despite these challenges, experts believe that Germany’s economy will improve in the coming year with a forecast predicting a 1.4% increase in GDP. The collaborative report was compiled by five leading economic research institutes in Germany: DIW in Berlin, IfW in Kiel, IWH in Halle, RWI in Essen and Ifo in Munich.

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