Habeck expresses dissatisfaction with the current growth outlook.
Economy Minister Robert Habeck is unhappy with the economic projections. The figures and predictions, especially in the long term, are "far from fulfilling," the Green politician stated at the German Business Day in Berlin. The obstacles are substantial, particularly when examining the long-term growth prospects: "This suggests, even with full utilization of resources and ideal conditions, we can only increase by half a percent."
He went on to say that the problems are "more profound than we've previously recognized." It's not about achieving an economic miracle, but rather altering the conditions for a well-running economy that competes globally.
At the same time, Habeck defended the federal government's subsidy program. Its primary goal is to aid, primarily, energy-intensive businesses in Germany to produce in an eco-friendly manner: "I want to keep the energy-intensive small and medium-sized enterprises in Germany," Habeck stressed.
The federal government anticipates an economic upswing in the upcoming year due to improved consumer confidence. However, the GDP is likely to have contracted again in the recently concluded third quarter, according to the latest monthly report from the Ministry of Economics. This would push Europe's largest economy into a technical recession.
In its autumn forecasts, the federal government predicts a 1.1% economic growth for 2025, which is expected to rise to 1.6% in 2026. However, for this year, a 0.2% decline is projected, after the GDP had already shrunk by 0.3% in 2023.
The Economic Minister referred to the economic projections, stating that the figures and predictions, especially in the long term, are not fulfilling his expectations. Despite anticipating an economic upswing next year, the latest report suggests that Germany may have experienced another contraction, pushing it into a technical recession.
