Wednesday , 12 June 2024
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Global Economy

Only 3.6% – Habeck has to correct the economic forecast

The economic data for the Federal Republic is cloudy like the weather above the Brandenburg Gate this Wednesday and that will hardly change in the medium term.

Delivery bottlenecks, the pandemic in general and runaway inflation have prompted Federal Minister of Economics Robert Habeck to reduce the economic forecast for the current year.

At the presentation of the economic report in Berlin, he said: “Economic development is subdued, but cautiously optimistic. We had to reduce last year’s autumn projection of 4.1 percent for GDP growth again to 3.6 percent. These are the numbers that we have in this economic report. This is clearly because the corona pandemic has taken hold of us for longer and with different mutations than was actually hoped and was foreseeable in the autumn. But that should not be about that ignore the fact that the German economy is very robust overall and that the labor markets are also very stable.”

France and Italy better off

The export-oriented German economy is significantly more affected by the global supply chain disruptions than other nations. Important industrial nations such as France and Italy have come through the crisis better so far. The German automotive industry in particular is suffering from the lack of semiconductors and has already reacted with production cutbacks.

The International Monetary Fund lowered the growth prospects for Germany for the current year by 0.8 percentage points to 3.8 percent and justified this with the supply bottlenecks.

Habeck’s overarching goal remains unaffected by the economic situation. He wants to transform the social market economy into a social-ecological market economy.

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