2024-08-15 05:03:03
Germany will face a lack of economic growth in 2024. As reported by Day.Az, Bloomberg analysts predicted such a development for Europe’s leading economy.
Economists say the country’s industrial problems continue to hold back growth, and Europe’s largest economy has begun to slow as summer approaches. Despite early forecasts that gross domestic product (GDP) would grow by 0.2 percent, it will end the year with only 0.1 percent growth. Analysts say similar gains are expected next year. The European Commission is of a similar opinion.
The manufacturing base that had been the key driver of Germany’s growth is struggling with stagnant exports. Research by Bloomberg Economics suggests that structural problems may be behind the stall in German industrial activity. In its latest monthly report, the Bundesbank warned that “the period of weak demand has not yet been fully overcome” and that industrial activity is likely to improve slowly.
Journalists from Sรผddeutsche Zeitung believe that the reason for the stagnation in Germany is the reluctance of businesses to invest. The IFO business climate index shows weak development of transport and logistics and points to difficulties in the construction industry. Another reason for the stagnation is the caution of consumers after the crisis due to “inflation memory”.
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