German Economy Takes a Turn: Collective Diagnosis Foresees Near-Stagnation for Early 2024

By Eleanor Harrison Mar27,2024
German economic institutes reduce 2024 growth forecast to 0.1% – DW – 03/27/2024

On Wednesday, a group of leading economic think tanks released their six-monthly “collective diagnosis” of the German economy for early 2024. The report, titled “German economy ailing — reforming the debt brake is no cure-all,” revised the growth forecast down from 1.2% to near-stagnation, at 0.1% for the year.

The summary of the report stated that Germany’s economy is struggling due to a phase of economic weakness accompanied by dwindling growth forces. Both economic and structural factors are contributing to the sluggish overall economic development. The report predicted that the situation would start to improve soon, but overall, the dynamic would not be “all that great.”

The collective diagnosis is a collaboration between leading German economic institutes including the DIW in Berlin, the IfW in Kiel, the IWH in Halle, the RWI in Essen, and Ifo in Munich. The German government also revised its economic forecasts downwards, warning of the likelihood of entering a technical recession by the end of the first quarter of 2024. German GDP contracted by 0.3% year-on-year in the last quarter of 2023, meeting the criteria for a technical recession with two consecutive quarters of negative growth.

One contributing factor to the economic challenges has been frequent strikes impacting rail network and air travel in Germany, leading to canceled flights and trains. However, a resolution was reached earlier this week after months of negotiations between Deutsche Bahn and GDL train drivers’ union on one major labor dispute affecting these sectors. Despite these challenges, it is forecasted that Germany’s economy will return to slight growth in

By Eleanor Harrison

As a content writer at newseasoning.com, I infuse flavor into words, crafting compelling stories that captivate and inform our audience. With a keen eye for detail and a passion for creativity, I strive to create content that not only engages but also inspires. Whether I'm concocting a savory blog post or whipping up a spicy product description, I pour my heart and soul into every piece I write. Join me on this flavorful journey as we explore the tantalizing world of content creation together.

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