Economists' Predictions for 2024: Economic Recession in Germany Will Continue

Calculations and predictions by economists and economic experts in Germany indicate that the country will not exit the cycle of economic recession this year. This forecast comes as Germany has surpassed Japan to become the third-largest economy in the world. The Council of Economic Experts in Germany assumes that the outlook for the country's economy will not be bright this year. In this context, the German government was set to present its annual economic report and latest economic forecasts for 2024 on Wednesday, February 21. Meanwhile, reports from German media indicate a reduction in economic growth to 0.2 percent. The government had previously expected this figure to rise to 1.3 percent in its autumn forecasts. Robert Habeck, Germany's Minister of Economy, stated earlier this month that the country's economy, the largest in Europe and traditionally a growth driver for the Eurozone, is under the influence of a perfect storm. According to him, the situation is 'significantly bad.' The severing of gas relations with Russia and rising energy prices due to the Russian invasion of Ukraine, along with the trend of increasing interest rates by the European Central Bank to curb inflation, have led to a decline in demand and investment in Germany. The Federal Statistical Office of Germany announced in late June that the country's economy shrank by 0.3 percent in the first quarter of 2023 compared to the previous quarter.