Connect with us
Finance Digest is a leading online platform for finance and business news, providing insights on banking, finance, technology, investing,trading, insurance, fintech, and more. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.


German economy to recover only slightly in 2024 – experts group

BERLIN (Reuters) -The German economy will contract in 2023 and recover only slightly next year, according to the annual report of the German Council of Economic Experts published on Wednesday.

Germany’s gross domestic product is expected to contract by 0.4% in 2023, according to the experts, in line with the forecast of the German government.

The energy crisis and reduced real incomes due to inflation are still weighing on the short-term economic outlook, the experts said. High interest rates are also taking their toll on construction and investment.

For 2024, the experts forecast growth of 0.7%, well below the 1.3% projected by the government.

Medium-term growth prospects are therefore at an all-time low, according to the report.

“In order to overcome weak growth, Germany must invest in its future,” said Monika Schnitzer, chair of the council. “This requires greater productivity through innovations, investments and more dynamism in startups.”

German Chancellor Olaf Scholz said on Wednesday he was confident the economy would grow again in 2024 through a package of measures to promote investment.

“We have to make sure we get back on track,” he said, when receiving the experts’ report. “It’s about future growth, and we want to see that again in 2024.”

“On the one hand, the Council of Economic Experts confirms measures such as the Growth Opportunities Act to strengthen the economy,” German Finance Minister Christian Lindner posted on X, formerly knows as Twitter. “However, it also puts its finger on the fact that we need further reforms.”

Schnitzer added that reforms were “urgently needed” in the tax and pension systems too.

According to the council’s forecasts, the inflation rate will fall to 2.6% in 2024, from an expected 6.1% this year.

As price rises moderate, private consumption should recover, making a positive contribution to growth next year, the economists said.

The analysis shows the growth prospects of the German economy in the coming decades will be dampened in particular by the shortage of labour due to demographic changes, said Veronika Grimm, member of the council.

She said there should be incentives for women to work and to foster immigration.

“However, measures to increase the volume of work will not be enough,” she noted. “Investment is of crucial importance if the German economy is to return to a sustainable growth trajectory.”

(Reporting by Maria MartinezEditing by Toby Chopra and Mark Potter)

Continue Reading

Why pay for news and opinions when you can get them for free?

       Subscribe for free now!

By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Posts