Germany will grow this year by 0.4%, two tenths more than expected, according to the German Minister of Economy

Inflation will be 5.9% in 2023 and 2.7% in 2024

MADRID, 26 Abr. (EUROPA PRESS) -

The gross domestic product (GDP) of Germany will grow this year by 0.4%, which represents an upward revision of two tenths in the expectations of expansion of the largest economy in Europe, as announced on Wednesday by the Minister of Economy and Climate Change, Robert Habeck.

"Following the coronavirus crisis, the German economy is proving to be adaptable and resilient, even during the energy crisis," Habeck celebrated.

The ministry has noted that current economic indicators such as industrial production, new orders and business confidence point to a rebound in activity as the year progresses.

However, construction will not benefit from this situation due to the increase in financing costs, while employment will advance, although in a "less dynamic way". Inflation will stand at 5.9% in 2023.

Likewise, the German government has affirmed that the stabilization measures taken by the Executive to contain the rise in company costs and the decrease in the purchasing power of families prevented a major contraction of the economy last winter.

Later, the head of Economy has announced that GDP growth for 2024 will be 1.6%, while inflation will be 2.7%.

The confidence of German businessmen improved in April for the sixth consecutive month, as reflected two days ago by the index prepared by the Munich Institute for Economic Research (Ifo), which stood at 93.6 points from 93.2 in the month past. In this way, it reached its highest value since February 2022, when the invasion of Ukraine began.

"This was due to improved business expectations," Ifo president Clemens Fuest said at the time, noting that the concerns of German businesses are diminishing, "but the economy still lacks dynamism."