The Federal Ministry of Economics does not expect a quick turnaround in the economic trend. Early indicators such as incoming orders and business climate, but also the subdued development of the global economy, point to a weak third quarter, according to a report from the ministry by department head Robert Habeck on the economic situation in September presented on Wednesday. “A noticeable economic recovery is not expected until the turn of the year 2023/24 at the earliest.”
The Federation of German Industries (BDI) lowered its economic forecast, as the news portal “The Pioneer” first reported. “The German economy is stalling after the recession in the winter half of the year,” wrote the BDI. The association expects economic output to decline by 0.4 percent for the entire year. In June, the BDI was still assuming stagnation. It was said that the growth impulses from foreign trade had become significantly weaker. In addition, private consumption is slowing down growth. “It’s not just the current mood in companies that is in the basement. Even in the medium term, there is still no improvement in sight.”
In its spring projection for this year, the federal government assumed an increase in gross domestic product of 0.4 percent. However, this is likely to be revised downwards in the autumn projection. (dpa)