2024-04-26 10:49:56
In February, the federal government drastically lowered its expectations for the economy. Now she is revising this assessment slightly upwards.
The federal government has slightly raised its economic forecast for this year. There are increasing signs that the German economy will be at an economic turning point in the spring, the Ministry of Economic Affairs announced in Berlin on Wednesday. Growth of 0.3 percent is now expected. In February, the government drastically reduced its forecast – to an increase in gross domestic product of just 0.2 percent.
Federal Economics Minister Robert Habeck (Greens) said that the ministry sees signs of a slight economic improvement as the year progresses. Inflation will continue to decline. According to the forecast, the increase in consumer prices is likely to decrease from 5.9 percent last year to 2.4 percent in the current year. This strengthens people’s purchasing power and supports the recovery of private consumption. The federal government expects growth of 1.0 percent for 2025.
Habeck calls for reforms
After the figures became known, FDP parliamentary group vice-president Christoph Meyer called on the coalition partners SPD and the Greens to support the Liberals’ proposals for a different economic policy. “In the coalition, the Chancellor, Economics Minister and Finance Minister agree that there must be an economic package,” he told t-online. The FDP presented ideas for better competitiveness, such as tax incentives, reductions in bureaucracy and a more efficient welfare state. “We expect that the SPD and the Greens will support the economic turnaround.”
The Economics Minister also spoke out in favor of reforms in view of Germany’s structural problems. Innovations must be strengthened, unnecessary bureaucracy reduced and the labor shortage must be addressed decisively.
Business associations have been calling for significant relief for companies for a long time. Habeck had also already spoken out in favor of a growth package. A twelve-point paper from the FDP caused a stir, with calls for relief for the economy and restrictions on the welfare state. This met with strong criticism, especially from the SPD.