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Economic experts warn of a further decline in the German economy of 0.5 percent in the coming year
The German economy could shrink further next year. The Cologne Institute for the German Economy assumes a decline of 0.5 percent. At least. In view of the crisis situation, the German Economic Institute (IW) expects a decline in German economic performance in the coming year. The gross domestic product (GDP) is expected to decline by 0.5 percent in 2024, the employer-related institute announced on Wednesday. It would be the second year in a row with a contracting economy. The federal government recently assumed 1.3 percent growth for the coming year. The Council of Experts, which advises the government, forecast an increase of 0.7 percent. According to the IW's assessment, however...
Economic experts warn of a further decline in the German economy of 0.5 percent in the coming year
The German economy could shrink further next year. The Cologne Institute for the German Economy assumes a decline of 0.5 percent. At least.
The federal government recently assumed 1.3 percent growth for the coming year. The Council of Experts, which advises the government, forecast an increase of 0.7 percent.
However, according to the IW's assessment, the general conditions remain so bad that this will not succeed. The dispute over the federal budget is particularly unsettling for companies. According to the analysis, many put their investments on hold.
For the forecast, the IW researchers used model calculations to examine how this would affect the economy. Accordingly, government spending of over 20 billion euros will be eliminated. This pushes GDP down by around 0.5 percent. “In the worst case, even a decline of one percent is possible.”
According to a report by amp2.wiwo.de,
The forecast by the Cologne Institute for the German Economy of a possible decline in German economic output by 0.5 percent in the coming year represents a pessimistic view of the further development of the German economy.
Since the general conditions are assessed as poor and the dispute over the federal budget is unsettling companies, this could lead to further reluctance to invest. In model calculations, IW researchers have determined that a loss of government spending of over 20 billion euros could push GDP down by around 0.5 percent, and in the worst case even by up to one percent.
This forecast could have an impact on the market and the financial industry as companies and investors may act more cautiously due to the uncertain economic situation. There could be a decline in investment and overall subdued economic activity, which could affect financial markets and lead to a general sense of uncertainty.
Read the source article at amp2.wiwo.de