Higher GDP plus in 2023 and 2024
Habeck expects more economic growth
4/20/2023 5:52 p.m
Last year, the federal government feared a recession in 2023 because of the Ukraine war. This assessment changed as a result and is now getting better and better, according to Robert Habeck. His outlook for next year is also more positive. Other experts assess the situation less well.
Federal Minister of Economics Robert Habeck expects slightly better economic growth this year than before. According to information from the German Press Agency, the Green politician now expects gross domestic product to increase by 0.4 percent in the spring projection. In the annual economic report presented in January, the government assumed growth of 0.2 percent. A GDP increase of 1.6 percent is now expected for 2024, after 1.8 percent previously. Habeck wants to present the spring projection next Wednesday. It forms the basis for the new tax estimate in May. Habeck is somewhat more optimistic with the forecasts than the economic experts and the leading research institutes.
Last year, the federal government also feared a recession this year as a result of the Ukraine war. However, there was no escalation of the energy price crisis. Finance Minister Christian Lindner said in Berlin at the Day of Family Entrepreneurs that the federal government will probably be more optimistic in the spring projection than the International Monetary Fund (IMF). The IMF expects a slight decline in economic output of 0.1 percent for Germany this year.
But there is too little economic momentum in Germany, said FDP leader Lindner. He again spoke out in favor of a fiscal growth package. The conditions for Germany as a business location would have to be improved. Negotiations on the 2024 federal budget are currently underway in the coalition. Lindner confirmed his course. Public finances need to be consolidated. He doesn’t expect any “miracles” from the tax estimate. It must also be checked which expenditures are necessary and which are desirable. The finance minister is therefore on a confrontational course with his cabinet colleagues.