Germany is facing an uphill economic battle in 2024. Europe’s largest economy is forecast to stall in the three months to March this year, Bloomberg reported, citing the research of analysts.
Many experts are pessimistic about economic development in Germany, once considered the powerhouse of the region. They believe the German economy is treading water, with no improvement in sight.
Economic activity in the country is expected to stay near zero in the first quarter of 2024. According to preliminary estimates, its gross domestic product will increase by only 0.1% in the January-March quarter. "Germany’s economy probably failed to grow again at the start of the year," Bloomberg stated.
This prediction meets the outlook provided by the Bundesbank. Earlier, the regulator warned that Germany would "stagnate at best" in the first quarter of 2024.
According to some economists, the country's GDP may contract in the period from January to March. In this case, Germany will fall into a recession for the first time in several years. Most experts estimate that the economy will continue to grow at a modest pace in the next quarters of 2024. From April to June, Germany's GDP is expected to rise by 0.2%. In the July-September and October-December periods, the economy will advance at a 0.3% pace.
Earlier, German Finance Minister Christian Lindner expressed alarm about the country’s failure to generate economic growth. According to the official, Germany has become less competitive in the global market lately. The record high level of "the compliance costs of bureaucratic projects" adds fuel to the fire, Lindner noted.
