Germany is unlikely to see an improvement in its struggling economy anytime soon, according to the Economic Ministry’s third-quarter report released on Wednesday.
Leading indicators such as incoming orders and the economic climate, but also the limited development of the world economy, point to a weak third quarter, according to the report presented by Economy Minister Robert Habeck.
“A notable economic recovery is not expected before the end of the 2023-24 year,” he said.
Meanwhile, the Federation of German Industries (BDI) lowered its economic forecast for 2023, forecasting a decline in economic output of 0.4% for the full year in a report released on Wednesday.
“The German economy is floundering,” writes the BDI.
In June the BDI was still predicting economic stagnation. Growth impulses from foreign trade have weakened significantly.
Furthermore, private consumption is slowing growth.
“It is not just the current mood of companies that is low. No improvement can be seen in the medium term either,” says the BDI.
In its spring projections for this year, the German government expected gross domestic product to increase by 0.4%. However, this trend is likely to be corrected downwards in the autumn projections.