The German government has halved its economic growth forecast for this year to just 0.5 percent. Economy Minister Katherina Reiche (CDU) presented the figures in Berlin. Without government impulses, the economy would stagnate.
In Berlin, Economy Minister Katherina Reiche (CDU) presented the German government's new economic forecast on Wednesday alongside chief economist Benjamin Weigert at a federal press conference. The forecast now predicts just 0.5 percent growth for the current year, halving prior expectations.
Weigert stated: "If we had no impulses at all, we would have no impulses." This refers to the fiscal impulse from higher government spending and a positive calendar effect that enable the modest growth.
The private sector shows little momentum: consumption and investments rise minimally, while foreign trade has a negative impact. The fiscal impulse more than offsets the trade deficit, averting stagnation.
