Economy Minister Robert Habeck presented poor economic figures to parliament this Thursday. He conveyed a sense of urgency while trying not to paint too bleak a picture of the overall situation.
Inflation has fallen — it averaged 5.9% last year and is expected to fall to 2.8%, according to the German government's annual economic report.
"We have reached a point where there is more money in our wallets again," Habeck told the Bundestag, expressing hope that consumption could then boost the economy.
The German economy is not doing well — this is nothing new. "Compared to most other major industrialized countries, our country is falling further behind. We do not see any chance of a rapid recovery in 2024," said the President of the Federation of German Industries, Siegfried Russwurm, back in January.
Many were not expecting the German government to lower its projected growth for 2024 so significantly — from 1.3% to 0.2%. It came as "quite a surprise," said Almut Balleer from the RWI Institute for Economic Research in Essen during a discussion at the Leibniz Association.
To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video
The uncertainty is too great, warns Balleer, who blames policymakers in particular. "Many were hoping that things would pick up once an agenda was announced on how the energy transition and other future challenges would be tackled."
But there have been some positive developments as well. Inflation has become manageable," according to Finance Minister Christian........