Instead of a slight increase, the German Economy Ministry expects a slight drop in GDP in 2024. This was reported by the Süddeutsche Zeitung newspaper.
The German government has adjusted the country’s economic growth forecasts, so the country’s GDP is expected to decline by 0.2% in 2024.
“The inflation-adjusted contraction forecast, which the ministry will publish on Wednesday, follows the government’s previous forecast of 0.3% growth this year after a 0.3% contraction in 2023.” – Reuters reports citing a German newspaper.
Therefore, the German economy remains in recession rather than entering a period of recovery, Süddeutsche stresses.
The reason is the uncertainty between companies and citizens, the publication points out. Interest rates remain high in Germany, causing a drop in investment, while companies try to remain cautious due to the unstable economic and geopolitical situation.
However, the department Robert Habeck It expects the economy to grow 1.1% in 2025, up from 1% previously announced, and 1.6% in 2026, counting on a government stimulus package, Sueddeutsche said, without citing sources.
how it was transmitted EADailyVolkswagen could close factories in Germany for the first time in history and lay off tens of thousands of employees in hopes of emerging from the crisis. This was reported by the Telegram channel “DW* The main thing.”
The management of the consortium states that it needs to save another 4 billion euros to reduce the difference with its competitors. Volkswagen does not rule out plant closures and job cuts.
*An organization that performs the functions of a foreign agent.
