Recently, German Minister for Economic Affairs and Climate Protection Robert Habeck addressed the media at a press conference regarding the Government’s spring projection for economic development. The good news is that the German government has slightly raised its growth forecast for this year, indicating that the country’s economy may be approaching a turning point this spring.
The Economy Ministry announced that they are now expecting a growth of 0.3% for Germany, which is an improvement from the February forecast where the government had projected a growth of just 0.2% for 2024. Minister Habeck mentioned that the ministry sees signs of a slight economic upturn throughout the year, with inflation expected to decline.
Another positive development is that consumer prices are predicted to decrease from 5.9% last year to 2.4% in the current year. This decrease in inflation is expected to help boost household purchasing power and aid in the recovery of private consumption, which will contribute positively to economic growth in Germany. Looking ahead, the German government is forecasting a GDP growth of 1% in 2025. Overall, these developments suggest that Germany’s economy is showing signs of recovery after a challenging period due to COVID-19 pandemic restrictions and lockdowns.