In recent statements, the German Ministry of Economy indicated its lack of anticipation for a sustainable economic recovery in the coming months. These projections were based on preliminary indicators that were notably characterized by low new orders and a decrease in corporate morale.
In its monthly report, the ministry affirmed the cautious signs of recovery in the consumption, services, and investment sectors. However, it focused on the factors that could undermine this recovery, particularly in light of persistent weak external demand, geopolitical uncertainties, high inflation rates, and tightening monetary policies.
The German Ministry of Economy asserts its viewpoint on recovery from crises
Germany is currently grappling with several economic challenges, including inflation rates surpassing the European Union’s targeted goal of 2%, and interest rate policies aimed at combating inflation. Additionally, there are crises such as the energy crisis and the slowdown in growth in China that are impacting the country.
A survey conducted in collaboration with the “Kantar” Institute reveals that these challenges have significantly impacted the confidence of German citizens. Around 80% of the respondents believe that the economic situation in the country is unfair, marking an increase of 32% compared to the previous year.
Sixty percent of the participants expressed concern about the trend towards widening the gap between the rich and the poor.
It’s worth noting that these indicators are putting German Chancellor Olaf Scholz under pressure, especially in light of the growing sentiments of dissatisfaction among citizens regarding the government’s economic policies.
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