Robert Habeck predicts low German economic growth - What financial experts say

Robert Habeck predicts low German economic growth - What financial experts say

According to a report by www.t-online.de, Federal Minister of Economics Robert Habeck will only expect meager growth rates for the German economy in the coming years. Accelerated demographic change, neglected location factors as well as geopolitical dangers and their effects on the global economy lead to a scenario with low economic growth for the foreseeable future. Despite the restrictive monetary policy and global economic conditions, the federal government is “expecting slight overall economic growth in 2024 despite the restrictive monetary policy and global economic conditions.”

The federal government's forecast from the fall of 1.3 percent has been revised noticeably downwards to less than one percent. The savings that became necessary after the budget ruling of the Federal Constitutional Court in November are also influencing the decline in growth. In order to put the economy on a growth path in the long term, more dynamic investment activity is necessary in the coming years.

The developments mentioned suggest that the economic challenges for Germany could increase significantly in the coming years. Geopolitical tensions and demographic change will put pressure on the economy, which may lead to a longer period of economic weakness. Investment and private sector activity are also urgently needed to stimulate growth. Tax policy incentives for private investments could play an important role in this. It is therefore important that the federal government takes measures to increase the willingness to invest and strengthen the economy.