The German government has revised its economic forecast upwards, despite ongoing challenges such as the war in Ukraine and sanctions against Russia. The spring economic forecast presented on Wednesday predicts a 0.4% economic growth, slightly more than the 0.2% predicted at the start of this year. This comes after the German central bank predicted a recession in the country in February.
Green Economy Minister Robert Habeck said that the German economy was proving adaptable and resilient in the energy crisis, and this was encouraging news. According to him, the government’s economic support measures had the intended effect, helping companies and private households during difficult times and bringing down high energy prices.
The German government also expects inflation to fall after soaring to record highs since the start of Russia’s war in Ukraine. After a rate of 6.9% last year, the federal government projects 5.9% this year and 2.7% next year. However, consumers will continue to face high living costs during the coming months, with the situation easing towards the end of the year.
The government estimates that this should lead to private consumption growing again. Despite ongoing challenges, the German government’s economic forecast is looking positive, and the country’s economy is showing resilience and adaptability in the face of crises.
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