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German Finance Minister says Germany’s economy is not in good shape

ByEditor

Feb 12, 2024

Christian Lindner, the German Finance Minister, spoke at the London School of Economics and addressed the notion that Germany is the sick man of Europe. He argued that Germany is not necessarily the sick man of Europe, but rather an unfit man in need of structural reforms to enhance its competitiveness. Despite having a healthy economy, Lindner noted that Germany is not in the best shape and needs to make changes to improve.

In 2023, Germany’s economy was the weakest among its large euro zone peers, due to factors such as high energy costs, feeble global orders, and record-high interest rates. The economy is expected to experience slower growth, at 0.9%, compared to the average of 1.4% for advanced economies in 2024. This has led some economists to label Germany as “the sick man of Europe.”

Lindner compared the German economy to the British economy, stating that both are in a downturn and in need of improvement. He specified that Germany needs to address issues such as reducing red tape, attracting workers into the labor market, and mobilizing private investment.

The Finance Minister also emphasized the need for a single capital market for private investment in the EU, rather than relying on subsidies. Lindner warned that it is unlikely for any economy to sustain subsidies for an extended period of time. Instead, he called for a focus on attracting private investment to boost the economy.

By Editor

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