November 17, 2024
German government expects economy to shrink by 0.2% this year, Sueddeutsche reports #NewsGerman

German government expects economy to shrink by 0.2% this year, Sueddeutsche reports #NewsGerman

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FRANKFURT (Reuters) – Germany’s economy ministry plans to downgrade its 2024 economic growth forecast, expecting Europe’s largest economy to shrink by 0.2%, newspaper Sueddeutsche Zeitung reported on Sunday.

The forecast for an inflation-adjusted contraction, which the ministry is due to publish on Wednesday, follows a previous government projection of 0.3% growth this year after a 0.3% contraction in 2023.

Last month Germany’s leading economic institutes downgraded their forecast for 2024 to a contraction of 0.1%.

The economy ministry did not immediately respond to a request for comment.

The ministry, led by Robert Habeck of the Green party, also plans to issue a forecast for 2025 economic growth of 1.1%, up from 1% forecast previously, and for 1.6% growth in 2026, banking on a package of government measures to stimulate growth, Sueddeutsche reported without citing sources.

(Reporting by Ludwig Burger; Editing by David Goodman)