Posted 2/22/2024, 10:00:41 PM
German Growth Forecasts Slashed as Economy Slows Amid High Prices and Labor Shortages
- Germany's economy is slowing, with growth forecasts for 2024 cut from 1.3% to just 0.2%
- Inflation has fallen to a more manageable level, but consumption remains weak as people opt to save
- The labor market remains strong, with 46 million employed currently and more growth expected
- Government disputes continue over how to boost competitiveness - via tax cuts or investment
- Structural issues like skills shortages and inadequate housing supply are hampering growth