The German government estimates that the German economy will enter recession in 2024, with a contraction of 0.2%, after a fall in GDP of 0.1% in 2023, the newspaper Süddeutsche Zeitung published on Sunday.
The Munich newspaper, which cites the forecasts of the German executive, affirms that the Ministry of the Economy, in the hands of the environmentalist politician Robert Habeck, calculates that the German GDP will contract by 0.2% this year, despite the fact that the government’s latest forecasts predicted economic growth of 0.3%.
“But instead of speeding up, “The economy continues to be characterized by reluctant consumption.”while a similar problem is posed by “companies that invest little in the face of high energy costs”, explains the Süddeutsche Zeitung.
According to the newspaper, Habeck’s ministry estimates that, despite the poor performance of the economy in 2024, German GDP will increase by 1.1% in 2025 and by 1.6% in 2026.
The German economy, the largest in the European Union and the third largest in the world, is considered the economic engine of the Old Continent.
