German Economy Minister Robert Habeck earlier admitted that the government s forecast for economic growth for 2024 had been revised down from 1.3% to 0.2%.
The 20-member Eurozone most likely entered a recession in the last quarter of 2023. Though data shows that Germany narrowly escaped downturn territory, its economic future and that of France are still stuck in a rut.
Germany s financial framework includes 29 separate funds outside the main budget, amounting to around €870 billion. With a freeze on government expenditure, the country s fiscal plans have been thrown into uncertainty, as vital projects take a hit.
Despite the ongoing challenge of the energy crisis, the German government expects that a recession in 2023 will be avoided, raising its forecast for the country s gross domestic product (GDP) from minus 0.4 per cent to plus 0.2 per cent.