IMK predicts a shrinking German economy in 2024 - reform of the debt brake is called for

IMK predicts a shrinking German economy in 2024 - reform of the debt brake is called for

According to a report by www.n-tv.de, the German economy will continue to face a challenge in 2024, according to the Institute for Macroeconomics and Business Cycle Research (IMK) of the trade union-affiliated Hans Böckler Foundation. The economic researchers expect that the gross domestic product (GDP) will shrink by 0.3 percent. Experts see one of the main causes as the debt brake, which makes important investments in climate protection and infrastructure more difficult. The authors of the study call on politicians to regain lost economic policy scope – by reforming the debt brake.

From a financial expert's point of view, a GDP contraction of 0.3 percent is an important indicator of the stability and development of the economy. This forecast could lead to investors having less confidence in the German economy and possibly withdrawing their capital. This could lead to a fall in stock prices on the stock exchanges and also affect the foreign exchange market. In addition, the demand for a reform of the debt brake could lead to political discussions that could also influence the financial markets.

It is important that the government takes the IMK's demands seriously and rethinks the debt brake in such a way that important investments in the future of the German economy are made possible.

It remains to be seen how the political and economic landscape in Germany will develop in the coming months. The decisions regarding the debt brake could have a significant impact on the market and the financial sector. Overall, it is important to closely monitor developments in Germany and react accordingly.