Germany’s Economy on the Brink of Turnaround: Updated Forecast and Minister Habeck’s Insights

German Minister for Economic Affairs and Climate Protection, Robert Habeck, recently spoke to the media at a press conference about the government’s spring projection on economic development. The German government has slightly revised its growth forecast for this year, indicating that the country’s economy may be approaching a turning point.

The Economy Ministry announced that they are now expecting a growth of 0.3% for Germany, which is an improvement from the February forecast where the government had projected a growth of just 0.2% for 2024. Minister Habeck mentioned that the ministry sees signs of a slight economic upturn throughout the year, with inflation expected to decline.

The forecast also predicts a decrease in consumer prices from 5.9% last year to 2.4% in the current year. This decrease in inflation is expected to help boost household purchasing power and aid in the recovery of private consumption. Looking ahead, the German government is forecasting a GDP growth of 1% in 2025.