Future of the German economy: Financial expert analyzes forecasts for 2024

Future of the German economy: Financial expert analyzes forecasts for 2024

According to a report by www.merkur.de, the German economy is still in an ongoing crisis. According to preliminary calculations by the Federal Statistical Office, price-adjusted economic output shrank by 0.3 percent last year. This goes hand in hand with a budget crisis and a deficit of a good 82.7 billion euros. The prospects for 2024 are therefore uncertain, as government economic stimulus measures could be limited due to the need for austerity as a result of the Karlsruhe judge's ruling. In addition, high energy costs and a growing labor shortage are weighing on the economic outlook.

It is expected that these uncertainties could lead to a further downturn in the market. Industry and the construction sector are already struggling with weak demand, which is limiting further development. Consumers are also facing increases in the CO₂ price and VAT, which could increase prices overall. This price increase could in turn hinder the recovery of private consumption and the construction industry.

The uncertainties associated with a potentially growing deficit ratio and the restrictions on government stimulus measures could lead to further stagnation in the economy. Therefore, investors and companies should take this into account when making strategic decisions and possibly realign their plans. It is important to closely monitor market developments and react flexibly to changes in order to minimize long-term effects on the financial industry.