Stefan Ghent, president of Germany’s Retail Trade Association, reports that global conflicts and regional tensions are influencing consumer confidence this Christmas season. The summary was shared with major media outlets, including the Frankfurter Allgemeine Zeitung.
Ghent points to a cautious spending climate among German shoppers, aligning with the view held by the German Retail Trade Association. He notes that the pre holiday period began on a notably soft footing, with weaker sales seen in both physical stores and online marketplaces.
The association leader predicts a sales dip of roughly five to six percent, identifying uncertainty, rising prices, and a trend toward higher savings among households as the primary forces behind the slowdown.
Earlier, Germany’s central bank tempered growth expectations. The country’s GDP outlook for 2024 and 2025 was revised downward due to weak global demand. The regulator now anticipates GDP to rise by 0.4 percent in 2024 and 1.2 percent in 2025, down from prior projections of 1.2 percent and 1.3 percent respectively.
During the period from July to September 2023, Germany’s GDP contracted by 0.1 percent, and on an annual basis it fell by 0.8 percent.
Leif-Erik Holm, a member of the right wing Alternative for Germany party, urged the government on November 3 to move away from what he described as a misguided sanctions policy.
In related remarks, a spokesperson from Russia’s Foreign Ministry drew parallels between Germany’s current stance and a Grinch like approach to gift giving, highlighting ongoing debates about policy and economic strategy. [citation: FAZ]