OECD predicts lower economic growth for Germany than almost all other industrialized countries
The OECD is predicting lower economic growth for Germany in 2024 than almost all other industrialized countries. According to the Economic Outlook published by the Organization for Economic Cooperation and Development (OECD) on Wednesday, gross domestic product is only likely to increase by 0.6% due to weakening exports. Only in the neighboring Netherlands is the increase likely to be even lower at 0.5 percent. By comparison, the average growth of the 38 industrialized nations in the OECD is estimated at 1.4 percent. At 1.2 percent, Germany is also likely to remain below the average of 1.8 percent in 2025. Europe's largest economy is even expected to shrink by 0.1 percent in the coming year, while the OECD can expect growth of 1.7 percent overall.
"The German economy is currently going through a difficult phase," OECD economist Isabell Koske told the Reuters news agency. "The energy crisis has affected Germany more than other countries, as industry plays a more important role here and dependence on Russian gas was much higher than in other countries." High inflation has also reduced the purchasing power of households and thus impaired consumption. "The budget crisis is also unsettling companies and consumers," said Koske. With reference to the debt brake, the Federal Constitutional Court has ruled that the 60 billion euros originally approved as a corona loan in the 2021 budget may not be subsequently reallocated to investments in climate protection and the modernization of the economy.
- Despite the challenges faced by Germany due to its reliance on Russian gas, industrialized countries, as predicted by the OECD, are projected to have an average economic growth of 1.8% in 2025, higher than Germany's estimated 1.2%.
- Contrary to the 1.4% average economic growth rate expected for the OECD's 38 industrialized nations in 2024, Germany is forecasted by the OECD to only experience a 0.6% increase in GDP.
- In line with the OECD's predictions, Germany, as an industrialized country, is anticipated to have lower economic growth than nearly all its counterparts for the coming year, with a projected shrinkage of 0.1%.
Source: www.ntv.de
