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. Ednews reports citing Reuters.
The revised forecast was approved by the cabinet on Wednesday as part of the government's annual economic report, government sources said. Economy Minister Robert Habeck is scheduled to give details later in the day.
Europe's largest economy shrank by 0.3% in 2023 and is broadly expected to enter another technical recession in the first quarter of this year.
Germany's economic advisers plan to follow the federal government's lead and reduce their forecast for economic growth in 2024, adviser Ulrike Malmendier told in an interview.
"I think we will definitely be going in the same direction... that is what our numbers are indicating," Malmendier said
The November forecast of the council of advisers to the government estimated growth would hit just 0.7% in 2024. The next official update is due in mid-May.