2024-11-13 17:55:08
Economy
Politics

Germany Faces Economic Stagnation Amid Uncertainty

Image courtesy of : AFP (TOBIAS SCHWARZ)

Germany is on the brink of economic stagnation, as experts forecast a meager growth of just 0.4% in 2025 for the country's gross domestic product. This prediction marks a significant downturn from earlier, more optimistic forecasts. The nation's economy is grappling with a complex mix of structural and cyclical challenges that are hampering growth.

Chancellor Olaf Scholz has stressed the urgent need for a growth initiative to rejuvenate the economy. However, political hurdles loom large, as the SPD and the Greens no longer hold a majority in the Bundestag, complicating the path forward for any proposed reforms. The recent collapse of the coalition government has added layers of uncertainty, causing both businesses and consumers to hesitate on making new investments.

The German Council of Economic Experts, often referred to as the "Wirtschaftsweisen," has called for comprehensive reforms. Their recommendations focus on reducing energy costs and cutting back on bureaucracy, which are seen as crucial steps to boosting industrial productivity.

Private consumption remains sluggish, despite a recent rise in real wages. Many households continue to save rather than spend, reflecting a cautious outlook on the economic future. These concerns are exacerbated by the slow rebound of the global economy, which has not bolstered German exports as expected.

To address these issues, the council suggests prioritizing public expenditure in areas such as infrastructure, education, and defense. They propose the creation of funds and legally mandated investment quotas to ensure sustained financial commitment to these sectors. As Germany navigates these economic headwinds, decisive action will be necessary to restore confidence and foster sustainable growth.

gmx
13. November 2024 um 13:34

Economic experts expect only slight growth in 2025

Economy
Politics
The economic experts expect only a mini-growth of 0.4% of the gross domestic product in 2025; the German economy is in stagnation; Chancellor Scholz says the growth initiative is urgently needed; however, the SPD and the Greens no longer have a majority in the Bundestag; another industrial summit is planned with Scholz on Friday; business associations are calling for fundamental reforms to lower energy prices and reduce bureaucracy.
Frankfurter Rundschau
13. November 2024 um 13:31

Economic Experts Expect Only Modest Growth in 2025

Economy
The 'Economic Experts' expect only modest growth in the German economy in 2025 after a decline in gross domestic product this year. The Council of Economic Experts has significantly lowered its forecast to 0.4 percent.
zeit
13. November 2024 um 13:30

Economic Outlook: Economic Experts Expect Only Moderate Growth in 2025

Economy
Finance
The "economic experts" expect only moderate growth of the German economy in 2025 after a decline in gross domestic product this year. The Council of Economic Experts has significantly lowered its forecast to 0.4 percent. Headline © dpa-infocom, dpa:241113-930-287739/1
zdf
13. November 2024 um 13:58

Economic experts expect little growth

Economy
Politics
The uncertainty caused by the end of the traffic light coalition leads to companies and citizens holding back on investments. The federal government is planning a growth initiative, but its implementation is uncertain after the end of the coalition. The economic experts see a high need for investment in infrastructure, education and defense and propose a fund for this purpose.
CW

Account

Waiting list for the personalized area


Welcome!

InfoBud.news

infobud.news is an AI-driven news aggregator that simplifies global news, offering customizable feeds in all languages for tailored insights into tech, finance, politics, and more. It provides precise, relevant news updates, overcoming conventional search tool limitations. Due to the diversity of news sources, it provides precise and relevant news updates, focusing entirely on the facts without influencing opinion. Read moreExpand

Your World, Tailored News: Navigate The News Jungle With AI-Powered Precision!