German economic institutes reduce 2024 growth forecast to 0.1% – DW – 03/27/2024
Economy

Germany’s Economy Forecasted to Return to Slight Growth in Near Future Despite Ongoing Challenges

A group of leading economic think tanks released their six-monthly “collective diagnosis” of the German economy for early 2024 on Wednesday. The report, titled “Germany’s economy is struggling — reforming the debt brake is no cure-all,” revised the growth forecast down from 1.2% to near-stagnation, at 0.1% for the year.

The summary of the report stated that Germany’s economy is struggling due to a phase of economic weakness accompanied by dwindling growth forces. Both economic and structural factors are contributing to the sluggish overall economic development. The report predicted that the situation would start to improve soon, but overall, the dynamic would not be “all that great.”

One contributing factor to the economic challenges has been frequent strikes impacting the rail network and air travel in Germany, leading to canceled flights and trains. However, a resolution was reached in one of the major labor disputes between Deutsche Bahn and GDL train drivers’ union earlier this week after months of negotiations. Despite these challenges, the report indicates that Germany’s economy is forecasted to return to slight growth in the near future.

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