For the third time in a row, the European Commission lowered the economic forecast for the Eurozone
| In a report, the European Commission lowered its economic forecast for the Eurozone for the third time in a row and also announced that there is no economic growth anywhere in Europe weaker than the Federal Republic of Germany. |
According to Webangah News quoted by Tasnim News agency Agency According to the German newspaper “Wirthschaftswoche”, the European Commission has reduced its economic forecast for the Eurozone for the third time in a row. Gives. According to this report, meanwhile, the economy is developing weaker than expected. The forecast for Germany looks even worse.
According to the forecast of the European Commission, the growth of the EU economy this year will be slower than recently expected. The body expects growth of 0.9 percent for the EU in 2024, according to an estimate published in Brussels on Thursday. This means that the European Commission is reducing its forecast for the third time in a row. In the fall, the commission expected growth of 1.3 percent. For the euro zone, the authority now forecasts growth of 0.8 percent this year (autumn: 1.2 percent).
Valdis Dambroskis, Vice President of the European Commission in He said: After a difficult year in 2023, the European economy developed somewhat weaker than expected. He added: However, the improvement is expected to accelerate gradually throughout the year and up to 2025. According to Dombroskis, inflation continues to moderate and rising real wages combined with a flexible labor market should support consumer demand. He emphasized: However, the global environment is very uncertain. We closely monitor geopolitical tensions that could negatively impact growth and inflation.
The European Union Commission also lowered its economic forecast for Germany: based on According to estimates, the economy of the Federal Republic will grow by 0.3 percent this year. In November, the authority forecast 0.8 percent growth for the EU’s largest economy in 2024.
The commission also lowered its estimate for last year, now showing growth of 0.5 It assumes a percentage in the European Union and the Eurozone (previously 0.6%). This estimate for 2025 predicts a growth of 1.7% for the international community and 1.5% for the Euro countries. For Germany, the Commission still expects an increase of 1.2 percent for next year.
According to the Commission’s estimates, annual inflation in the euro area will decrease in the fall and faster than expected. From 5.4% in 2023 to 2.7% this year and 2.2% next year.
Expressing the concern of the German Economy Minister about the economic conditions of his country
In the meantime, Robert Haubeck, the German Federal Minister of Economy, is very worried about the state of the German economy. The German official announced in Leipzig that the federal government will significantly reduce its economic forecast for this year. According to him, economic growth is expected to be only 0.2%. “These conditions are dramatically bad,” Haback says. We can’t go on like this.”
Habakk will deliver the annual economic report next week. In its autumn forecast, the government predicted 1.3 percent growth this year. Last year, the German economy entered a recession. Haback also cited the consequences of the Federal Constitutional Court’s budget ruling as the reason for lowering the forecast. This means people will have less money to invest, he said, as the government was forced to let energy price brakes expire at the end of 2023 due to austerity restrictions.
He emphasized: In general, we should invest more in this country and promote economic growth.”
In this situation, both Haubeck and Christian Lindner, the German Minister of Finance, want to strengthen the competitiveness of the German economy. are, but the offers are different.
When asked what the biggest problems with business are, Hoback said there is too much bureaucracy. He announced measures, but at the same time pointed out that the states are also responsible for many laws. There is still a shortage of workers, so the economy is not working at full capacity, he stressed. In addition, the handicrafts sector is suffering from weakness. The economy is suffering. People have less money, they are holding money, companies are not investing.”
However, Germany is in an economic crisis. Federal Finance Minister Christian Lindner warned on Wednesday evening. Germany will be among the lowest industrialized countries in terms of economic growth, he said in a speech in Potsdam: “I find this completely shameful and socially dangerous.
The European Union Commission also reported on Thursday: Nowhere in Europe is economic growth weaker than in the Republic Not federal.
Significant increase in corporate bankruptcies in Germany
In this situation, the number of normal bankruptcies registered by companies in January compared to the same month last year increased by 26.2 percent. But it’s not just the current crises that are clearly putting pressure on companies.
Difficult conditions such as recession, high interest rates and high energy prices forced more German companies to cease operations at the beginning of the year. The number of regular bankruptcies filed in January rose 26.2 percent from the same month last year, according to the Federal Bureau of Statistics on Friday. In December 2023, the increase was 12.3 percent. which was less than half.
From January to November 2023, the number of corporate bankruptcies increased by 23.2 percent to 16,264 cases. Local courts announced about 1.5 billion euros in creditors’ claims for November alone. Stephen Müller, a researcher at the Hull Institute for Economic Research (IWH), said: “The state of corporate insolvencies is dynamic and will continue to develop in numbers over the next few months.” will give.
| Publisher | Tasnim News |
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