Germany’s Economy on the Brink of Recovery: Government Revises Growth Forecast for 2024

In a recent press conference, German Minister for Economic Affairs and Climate Protection Robert Habeck addressed the media regarding the Government’s spring projection regarding economic development. The German government has slightly raised its growth forecast for this year, indicating that the country’s economy may be approaching a turning point this spring.

The Economy Ministry announced that they are now expecting a growth of 0.3% for Germany, the largest economy in the European Union. This is an improvement from the February forecast, where the government had projected a growth of just 0.2% for 2024. Minister Habeck mentioned that the ministry sees signs of a slight economic upturn throughout the year, with inflation expected to decline.

Looking ahead, the German government is forecasting a GDP growth of 1% in 2025. The forecast also predicts a decrease in consumer prices from 5.9% last year to 2.4% in the current year. This decrease in inflation is expected to help boost household purchasing power and aid in the recovery of private consumption.