The written statement released by the Ifo included Wohlrabe’s assessment that the German economy will shrink by 0.1% in the second quarter of this year. Wohlrabe noted that the economic recovery, especially in industry, will not take place for long, saying: “Energy-intensive industries have managed to increase production slightly since the beginning of the year. In other industries, economic production has stagnated. The production sector. ” he commented. Wohlrabe noted that cumulative orders continue to decline and new orders remain outstanding, saying: “We cannot expect any significant improvement in the third quarter of 2024. The German economy is in crisis,” he said.
Wohlrabe said the recovery in private consumption was also stalling, saying, “The operating environment for consumer service providers and the retail sector deteriorated further in July. As a result, private consumption is likely to grow only modestly in the third quarter.”
Germany is the eurozone’s growth laggard.
Meanwhile, ING’s assessment of the German economy noted that Germany is the euro zone’s slowest growing economy. The assessment said there was no easy way out of the recession the country is in, adding that “a recovery is still possible in the second half of the year, but it is unlikely to be a strong one.”
According to preliminary second-quarter gross domestic product (GDP) figures released by the Federal Statistical Office, the German economy contracted 0.1 percent on a seasonal basis in the second quarter.
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