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German economy stagnates in 2024 and begins to recover next year
The European Commission forecasts that the German economy will stagnate this year and begin to recover in 2025, with public finances "on a path of consolidation".
© Lusa
Economia Alemanha
In the economic forecasts for spring, released today, the community executive anticipates that Germany's Gross Domestic Product (GDP) will remain practically stagnant at 0.1% this year and will grow by 1.0% in 2025, driven by internal demand, which should slowly increase later this year.
Brussels estimates that investment should remain below pre-COVID-19 pandemic levels, given the constraints resulting from the high financing costs.
In the macroeconomic exercise of winter, in February, economic growth of 0.3% was anticipated this year and 1.2% in 2025, data that had already been revised downwards compared to November (0.8% and 1.2%, respectively).
The budget deficit should be set, this year, at 1.6% of GDP and at 1.2% in 2025, while public debt is predicted at 62.9% and 62.2% of GDP, respectively.
The inflation rate in the largest economy of the European Union should be set at 2.4% in 2024, falling to 2.0% the following year and the unemployment rate will be 3.1% in both years.
The European Commission publishes two global forecasts every year (spring and autumn) and two interim forecasts (winter and summer).
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