Germany's economic outlook brightens - but still cloudy
The short-term outlook for Europe’s largest economy has improved in recent months, a report by the German Council of Economic Experts said on Wednesday, but only to a limited degree. The panel said any upswing looks set to be limited by rampant inflation , tighter financing conditions and sluggish foreign demand. What the experts said The short-term outlook for the German economy has brightened slightly because of an initially stabilized energy supply situation and lower wholesale prices, the report said. The council predicted Gross Domestic Product (GDP) growth of 0.2% in 2023, compared with its previous prediction that it would decline — also by 0.2%. The five experts who compiled the report said they expected growth of 1.3% in 2024. However, they said, the continued upward path of inflation was causing a loss of purchasing power and dampening consumer demand. Meanwhile, rising interest rates worsen financing conditions and were leading to a decline in investments. Altho...