Debt brake slows German upswing: Study predicts global economic recovery

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Despite the global economic recovery, Germany is struggling with the debt brake - experts warn that it will slow down growth. Find out more in our recent article about the global economy.

Deutschland kämpft trotz globaler Wirtschaftserholung mit Schuldenbremse – Experten warnen vor Wachstumsausbremser. Erfahren Sie mehr in unserem aktuellen Artikel über die Weltwirtschaft.
Despite the global economic recovery, Germany is struggling with the debt brake - experts warn that it will slow down growth. Find out more in our recent article about the global economy.

Debt brake slows German upswing: Study predicts global economic recovery

According to a study presented, the global economy is showing signs of sustained recovery. While Germany benefits from this positive development, there is still an obstacle in the form of the debt brake. Experts believe that a sustained slowdown in the German economy is unlikely, compared to other European countries such as Italy, France and Spain. Structural fiscal policy in Germany, particularly the debt brake, has been identified by economists as an obstacle to growth. This contrasts with the optimistic outlook for the global economy as a whole.

The US credit agency predicts possible easing of monetary policy by the European Central Bank in the second quarter of 2024, which has already led to increased optimism and a slight increase in hiring. The credit agency sees emerging markets as engines of global economic growth. Asian countries such as China, India, Vietnam and African countries are particularly showing positive developments. Nevertheless, geopolitical conflicts and upcoming elections are identified as potential risk factors for global economic growth.

The analysis highlights the challenges facing the global economy, while at the same time showing optimistic signs of continued recovery. The situation in Europe and especially in Germany is influenced by structural factors such as the debt brake, which act as a potential brake on economic growth despite a positive global outlook. However, expectations of an easing of monetary policy and the associated increased investment activity could lead to more positive economic development in the future.