By Maria Martinez
Germany's economy is expected to contract by 0.2% in 2024, making it the only G7 country with shrinking output for the second year in a row. This news comes as a blow to investors and analysts who were hoping for a rebound in the second half of the year.
With Germany's economy already struggling compared to its peers, the latest projections from the International Monetary Fund indicate that the country could be facing a recession if output continues to decline. This has sparked fears among investors and policymakers alike.
Despite these challenges, the German government has announced a growth package of 49 measures aimed at stimulating the economy and bringing back jobs. If implemented successfully, these measures could help strengthen the economy and boost investor confidence.
Looking ahead, the economy ministry is optimistic about a return to growth in 2025, with a forecast of 1.1% growth. This is expected to be driven by increased private consumption, lower inflation, and tax relief. Inflation is also projected to decrease over the next few years, which could further support economic growth.
Overall, the outlook for Germany's economy remains uncertain, but investors should keep a close eye on developments and government policies to make informed investment decisions. The potential for a recession and the implementation of growth measures will be key factors to watch in the coming months.