Expert explanation: Weak growth and course corrections in the 2023 annual economic report

Expert explanation: Weak growth and course corrections in the 2023 annual economic report

According to a report by www.fdp.de,

The economy is not shrinking, but growth is weak. This is what the annual economic report says, which forecasts growth of 0.2 percent for 2023. According to the Free Democrats, it is now time for course corrections.

Germany's infrastructure expansion needs speed and priority
According to the Free Democrats, there is a lack of dynamism in the German economy and it is time for a more supply-oriented economic policy. FDP leader Christian Lindner emphasized the need to create new prosperity and called for a modernization of the infrastructure. Christian Dürr, FDP executive committee member and parliamentary group leader, also warned that modernizing the infrastructure is an important factor in strengthening Germany's competitiveness.

The expansion of railways and roads and the acceleration of legal proceedings in the transport sector were highlighted as important steps to promote competitiveness. It is emphasized that Germany needs to speed up its infrastructure projects.

We have to make Germany more attractive again
The Free Democrats emphasize the need to make Germany more attractive again, especially through less bureaucracy, quick planning and approval procedures and a good tax framework. As an example, it was mentioned that the company BioNTech may want to move the location of its cancer research from Germany to Great Britain because drug development is progressing faster there.

New growth package for Germany
Christian Lindner announced an ambitious tax program that will include new depreciation options and investment bonuses for companies. He emphasized that tax policy is increasingly becoming an important competitive factor and that a new growth package is planned to strengthen the competitiveness of the German economy.

Overall, the demands of the Free Democrats for more speed in infrastructure expansion and the creation of attractive framework conditions show that Germany's competitiveness is a central concern. The implementation of such measures could have positive effects on the economy and the financial market as they would increase Germany's attractiveness for companies and investors. It remains to be seen whether and to what extent these demands will be implemented into political and economic reality.