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German economic problems in 2024: Financial experts criticize the debt brake and predict rising unemployment figures
As web.de reports, the German economy is still on course for recession. The trade union-affiliated economists are calling for a change of course from the traffic lights and a move away from the debt brake. The forecast by the Institute for Macroeconomics and Business Cycle Research (IMK) of the trade union-affiliated Hans Böckler Foundation says that the gross domestic product (GDP) will decline by 0.3 percent in 2024, the same as in 2023. This development could have serious effects on the economy and the labor market. The restrictive financial policy, especially due to the traffic light austerity measures, could lead to a consolidation of stagnation tendencies in the long term. In addition, the number of unemployed people is expected to rise significantly, a weakness that the German...
German economic problems in 2024: Financial experts criticize the debt brake and predict rising unemployment figures
How web.de reports, the German economy is still on course for recession. The trade union-affiliated economists are calling for a change of course from the traffic lights and a move away from the debt brake.
The forecast by the Institute for Macroeconomics and Business Cycle Research (IMK) of the trade union-affiliated Hans Böckler Foundation says that the gross domestic product (GDP) will decline by 0.3 percent in 2024, the same as in 2023. This development could have serious effects on the economy and the labor market.
The restrictive financial policy, especially due to the traffic light austerity measures, could lead to a consolidation of stagnation tendencies in the long term. In addition, the number of unemployed is expected to rise significantly, a weakness that the German labor market has not shown for a long time.
A reform of the debt brake and the establishment of a special fund for the socio-ecological transformation of the economy could be possible solutions to improve the difficult situation. The current fiscal situation could therefore make it difficult to make significant investments in areas such as education and infrastructure, which are crucial to the country's future.
Given these facts, economic policy uncertainty could lead to slower economic momentum and an uncertain labor market. Political leadership faces immense challenges to address the current situation and promote future growth.
Read the source article at web.de