Overcoming economic weakness: Experts discuss strategies for sustainable growth

Overcoming economic weakness: Experts discuss strategies for sustainable growth

According to a report by www.cicero.de,

In summary, the OECD has halved the growth forecast for the German economy for the current year. Growth is now estimated at just 0.3 percent, compared to 0.6 percent in the fall forecast. This is the lowest growth rate for many years and there are clear concerns about Germany's economic situation.

The expert discussion with renowned German economists such as Ifo President Clemens Fuest and economic researcher Stefan Kooths revealed that the government's previous economic policies may not be sufficient to address the current problems. It is emphasized that demographic change fundamentally changes the economic framework and reduces potential growth. In addition, the focus on consumptive government spending while neglecting important investments is criticized.

The discussion also highlighted the finding that certain investments, such as subsidizing battery factories, are viewed as “really a waste of money.” Experts see these as problematic because they neglect necessary investments in research and future technologies.

Concerns were also expressed that excessive public investment could crowd out private investment. The economists see a possible solution in strengthening the framework conditions for companies and an overall strengthening economic policy that does not attempt to politically determine sectors worthy of support.

In summary, the experts take a critical stance towards current economic policy and critically question measures such as subsidizing battery factories and debt-financed tax breaks. This shows that the current economic situation in Germany raises serious concerns and a revision of economic policy may be necessary. The experts' proposals are aimed at strengthening the entire economy and a long-term economic policy line.