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The German government has downgraded its growth forecast for this year, predicting the economy will contract by 0.2 per cent versus an earlier assumption of 0.3 per cent growth.
But it said that a revival in private consumption, international demand for industrial goods and a resurgence in investment activity would power a recovery in gross domestic product at the start of 2025.
It said the eurozone’s biggest economy would grow by 1.1 per cent next year and by 1.6 per cent in 2026.
“Since 2018, the German economy has not grown strongly,” said Robert Habeck, economy minister. He blamed structural problems, such as Germany’s persistent skills shortage, excessive bureaucracy and high energy costs.
This is a developing story