German government raises economic forecast

class=”sc-3778e872-0 cKDKQr”>

He spoke of the good news. The federal government now expects gross domestic product (GDP) to rise 0.4 percent this year. It had assumed 0.2 percent in January.

Economic indicators such as industrial production, incoming orders and the business environment point to an economic recovery later in the year. According to forecasts, the economy is expected to grow by 1.6 percent next year.

The Ministry announced that the Federal Government’s support and stabilization measures to mitigate rising costs for companies and the loss of purchasing power of private households prevented a stronger slowdown in the winter half. Despite a difficult environment, there was talk of a gradual recovery.

Inflation also peaked. After 6.9 percent last year, the federal government assumes it’s 5.9 percent this year and 2.7 percent next year.

The spring projection forms the basis for the new tax forecast for May. Last year, the federal government also feared a recession this year as a result of the Ukraine war. However, there was no escalation in the energy price crisis.

(SDA)

Source :Blick