From 0.2 to 0.3 percent: The Ministry of Economic Affairs now expects slightly greater growth for 2023. There are signs of a slight economic improvement, says Habeck
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 in Berlin announced. 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.
The Economics Minister spoke out in favor of reforms in view of the structural problems at the location. 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.
Source: Stern
