German government does not hope for a swift rebound

The German government expects the economy to grow 0.2% this year, far less than a previously forecast 1.3%, as weak global demand, geopolitical uncertainty, and persistently high inflation dent hopes for a swift rebound.

Europe’s largest economy shrank by 0.3% in 2023, making it the world’s worst-performing major economy, and it is expected to enter another technical recession in the first quarter of this year.

“The economy is set to grow by 1% next year,” Robert Habeck, Economy Minister, said. “The growth of German GDP is extremely dependent on world trade. Global trade is developing at a historically low level,” he added.