BERLIN (DW) - German Economy Minister Robert Habeck is expected to confirm a revised outlook for Europe’s largest economy, drastically lowering its growth expectation for 2024.
The economy has lurched between stagnation and recession in recent quarters, with Germany battered by what Habeck has described as “a perfect storm.”
Early reports indicate that the German Cabinet has approved an economic forecast revising growth down to 0.2% this year — well below a previous forecast of 1.3%.
A draft of the report seen by the Reuters news agency listed high inflation and reduced purchasing power among the obstacles to recovery.
“The German economy continues to find itself in difficult waters at the beginning of the year,” Reuters cited the draft as saying.
The government is also expected to forecast an easing in inflation on Wednesday, from 5.9% in 2023 to 2.8% this year.
Geopolitical uncertainty, higher interest rates, and lower global demand from markets such as China have also proved to be a hurdle. Meanwhile, Germany’s large industrial sector has been particularly damaged by the loss of cheap Russian gas imports.