Germany makes slight upgrade to economic growth forecast

DPA
1 min read
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Robert Habeck German Minister for Economic Affairs and Climate Protection, speaks at the press conference on the Government's spring projection on economic development. Michael Kappeler/dpa
Robert Habeck German Minister for Economic Affairs and Climate Protection, speaks at the press conference on the Government's spring projection on economic development. Michael Kappeler/dpa

The German government slightly raised its growth forecast for this year, pointing to indications that the country's sputtering economy will reach a turning point this spring.

Growth of 0.3% is now expected for Germany, the largest economy in the European Union, according to the Economy Ministry on Wednesday.

In February, the government had drastically downgraded its forecast for 2024 to just 0.2%.

Economy Minister Robert Habeck said the ministry sees signs of a slight economic upturn in the course of the year, while inflation would continue to decline.

According to the forecast, the increase in consumer prices should fall from 5.9% last year to 2.4% in the current year, bolstering household purchasing power and helping private consumption recover.

The German government is forecasting GDP growth of 1% in 2025.

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