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Top economic research institutions predict that Germany's economy will contract in 2024

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2024-09-25 05:31:58
The German economy ministry will release an official report on Thursday, or indicate that the German economy will contract in 2024, sources told DPA on Tuesday. The ministry warned that Germany's gross domestic product (GDP) could fall by 0.1 percent this year, while in the spring they expected the economy to grow by a meager 0.1 percent. The biannual study includes contributions from top think tanks such as Munich-based think tank IFO and the German Institute for Economic Research DIW. The researchers still expect Germany's economic output to be positive in 2025, but in the autumn report, the 2025 GDP growth forecast has been revised to 0.8 percent from 1.4 percent in the spring, sources said. The coalition government led by Chancellor Gerhard Scholz is planning a series of measures to stimulate economic activity, but business groups complain they are insufficient and they want fundamental reforms. Among their biggest complaints are high energy prices, excessive bureaucracy and a shortage of skilled workers.