Germany slightly upgrades economic growth forecast

During a press conference on the Government’s spring projection on economic development, Robert Habeck, the German Minister for Economic Affairs and Climate Protection, spoke about the slight increase in the country’s growth forecast for this year. The Economy Ministry now expects a growth of 0.3% for Germany, the largest economy in the European Union.

Previously, in February, the government had downgraded its forecast for 2024 to just 0.2%. However, Habeck mentioned that there are signs of a slight economic upturn expected throughout the year, with inflation projected to decline. Consumer prices are predicted to fall from 5.9% last year to 2.4% in the current year, which should help boost household purchasing power and aid in the recovery of private consumption.

Looking ahead, the German government is forecasting a GDP growth of 1% in 2025, indicating confidence in the country’s economic recovery. Habeck emphasized the importance of these forecasts and the positive direction that the economy is headed towards.