Posted 1/2/2024, 12:21:23 PM
Germany Faces Economic Headwinds as Growth Stalls Under Inflation, Energy Woes, and Budget Uncertainty
- Germany's economy stagnated in 2022 and forecasts for 2023-2024 are bleak, with GDP growth predictions below 1%
- High inflation, the energy crisis, supply chain issues, and companies moving production abroad are hurting the economy
- The Constitutional Court rejected €60 billion in COVID loans the government wanted to use for economic transformation
- The ruling created budget uncertainty and forced austerity measures that could further slow growth
- Multiple threats like dependence on Russian gas, China's economic downturn, and reduced US security support have strained Germany