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The German economy stagnates in 2024 and begins to recover next year

The European Commission predicts that the German economy will stagnate this year and begin to recover in 2025, with public finances “on the path to consolidation.”

In the spring economic forecasts, published this Wednesday, the community executive anticipates that Germany’s Gross Domestic Product (GDP) will remain practically unchanged. stagnant at 0.1% this year and will grow 1.0% in 2025driven by domestic demand, which is expected to rise slowly this year.

Brussels estimates that investment should remain below levels prior to the Covid-19 pandemic, given the limitations resulting from high financing costs.

In the winter macroeconomic exercise, in February, economic growth was expected to be 0.3% this year and 1.2% in 2025, data that had already been revised downwards compared to November (0. 8% and 1.2%, respectively).

oh Budget deficit should look this year at the 1.6% of GDP and 1.2% in 2025, while public debt is expected to be 62.9% and 62.2% of GDP, respectively.

TO rate of inflation in the largest economy of the European Union should focus on 2.4% in 2024, falling to 2.0% the following year and unemployment will be 3.1% in both years.

Every year the European Commission publishes two global forecasts (spring and autumn) and two intermediate forecasts (winter and summer).

Source: Observadora

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