The German Ministry of Economy reduced the country’s 2024 GDP growth forecast to 0.2%. This was stated by the head of the department, Robert Habeck. CNBC.
The ministry expected an increase of 1.3 percent in 2024. At the same time, according to Habeck, GDP growth is expected to be 1% in 2025.
The head of the department explained the revision of the forecast with the global economic situation, low growth in world trade and high interest rates. These factors especially negatively affected construction investments.
Habeck stated that the German economy was recovering from the crisis slower than expected. He also noted Germany’s stability after abandoning Russia’s oil and oil products.
According to the Ministry’s forecasts, inflation will drop to 2.8 percent in 2024 and return to the target level of 2 percent in 2025.
Before that, Christian Lindner, head of the German Ministry of Finance stated to Germany’s increasing poverty.
Previously in Germany named Number of Ukrainians entering the country in 2023.