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Finance Minister Lindner at the political Ash Wednesday in Potsdam: “I find this downright embarrassing and socially dangerous.”
Photo: Fabian Sommer / dpa
The economic prospects in Germany are significantly worse than previously assumed. Federal Finance Minister Christian Lindner has now warned of the consequences of a stagnating economy in Germany. With a view to the growth of just 0.2 percent forecast for the German economy in 2024, the FDP leader said in the evening in Potsdam: "I find this downright embarrassing and dangerous from a social perspective."
Germany will thus end up in the bottom group of industrialized countries again. With the ongoing weak growth, the promise of advancement in society is at risk.
Lindner: The country needs an economic turnaround
This has serious consequences, especially for young people, but also for immigrants who want to build a future in Germany, said Lindner at the FDP Brandenburg's Political Ash Wednesday. "If we do nothing, our country will fall behind," said the FPD leader. “Then Germany will become poorer.” That’s why the country needs an economic turnaround. Above all, a reduction in bureaucracy is required.
The government had previously expected GDP growth of 1.3 percent. However, this forecast from October has no longer been considered realistic for a long time. High inflation, rising interest rates and the weak global economy had already slowed down the German economy in 2023. GDP shrank by 0.3 percent last year.
Both the Munich Ifo Institute and the Kiel Institute for the World Economy (IfW) are currently even more optimistic than the federal government. The Ifo researchers lowered their forecast for 2024 from 0.9 to 0.7 percent in January, the IfW from 1.3 to 0.9 percent in December. They want to present new forecasts in March.
aeh/Reuters