German Economy on Brink: Expert Panel Slashes Growth Forecast and Warns of Recession Risk”.

German economic institutes reduce 2024 growth forecast to 0.1% – DW – 03/27/2024

A panel of leading economic experts released their six-monthly analysis of the German economy for early 2024 on Wednesday. Entitled “German economy in peril – a cure-all for the debt brake is not enough,” the report revised the growth forecast from 1.2% to near stagnation, at 0.1% for the year. The report emphasized that Germany’s economy is struggling due to an extended period of economic weakness and dwindling growth forces. Both economic and structural factors are contributing to the sluggish overall economic development, according to the report.

The report highlighted that consumers and their recovering purchasing power, as inflation drops and wages rise in many sectors, would be the most important catalysts for economic recovery. The collective diagnosis was a joint effort between several leading German economic research institutes, including DIW in Berlin, IfW in Kiel, IWH in Halle, RWI in Essen, and Ifo in Munich. The German government also downgraded its economic forecasts, warning that there is a significant chance of entering a technical recession by the end of the first quarter of 2024.

In recent years, frequent strikes have disrupted rail and air travel in Germany, resulting in cancelled flights and trains. However, a resolution was reached between Deutsche Bahn and GDL train drivers’ union earlier this week after months of negotiations regarding one of the major labor disputes. Despite these challenges, however

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