Germany was once the powerhouse of Europe; for decades, its economy has helped drive the continent’s growth. No longer. Berlin’s economy ministry plans to downgrade its growth forecast for this year. The German government now expects the economy to shrink by 0.2 per cent in 2024 – down from a previous estimate of 0.3 per cent growth, Sueddeutsche Zeitung reports.
Is this the medicine the German economy needs to get it back on to its feet?
Germany appears to be on the brink of a second year in a row in which its economy is going in the wrong direction. German output contracted 0.3 per cent last year and the country’s economy – weighed down by inflation and high energy costs – was among the weakest performers in the world.
For now, many Germans are weathering the storm; thanks to its overall strength, the gloomy outlook for the economy has yet to affect the population’s wealth significantly.
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