OECD forecast: German economic growth halved - experts expect difficult times

OECD forecast: German economic growth halved - experts expect difficult times

According to a report by www.tagesschau.de,

The German economy is unlikely to grow much this year, according to the OECD. The forecast for economic growth in Germany has been halved, while other countries are recording stronger growth. According to OECD expert Isabell Koske, the main reason for the weak performance of the German economy in international comparison is that the energy-intensive industry has a greater influence on the German economy than in other countries in the Eurozone. The OECD figures show that the situation for companies in Germany is tense due to the weak global economy. Exporters continue to suffer from a decline in orders and the fiscal crisis has increased uncertainty for businesses and households.

The forecasts for German gross domestic product (GDP) in 2024 vary. While the Munich ifo Institute forecasts growth of 0.7 percent, the German Economic Institute (IW) expects a decline of 0.5 percent. Experts expect the German economy to be stuck in recession at the start of the year, with business sentiment worsening in January, according to a monthly survey by the Munich-based Ifo Institute.

Overall, the OECD forecast and the resulting factors suggest a difficult year for the German economy. Low economic growth or a contraction could lead to further economic challenges and further impact business and consumer sentiment. This could lead to a decline in investment and private consumption, which in turn will impact the overall market and the financial sector. It would therefore be important to keep an eye on economic developments in Germany and, if necessary, take measures to stimulate growth.