Experts slash economic growth forecast for ‘ailing’ Germany
Experts slash economic growth forecast for 'ailing' Germany Euronews
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Germany’s Economic Research Institutes Slash GDP Outlook
Five of Germany’s economic research institutes have recently released their six-monthly “collective diagnosis” of the German economy. The report highlights the challenges faced by the country, including low domestic demand and high gas and electricity prices impacting exports.
Revised Growth Forecast
The initial forecast made last autumn, projecting a 1.3% growth, has been significantly revised down to just 0.1%. The report emphasizes that the improvement of the economic forecast heavily relies on consumer purchasing power.
Economic Weakness and Structural Factors
The report states, “The economy in Germany is ailing. An economic weakness that lasted until the end is accompanied by dwindling growth forces. Economic and structural factors overlap in the sluggish overall economic development. Although a recovery is likely to begin in the spring, the overall momentum will not be too great.”
Impact of High Energy Prices
Experts have warned that domestic demand has not increased as expected due to high gas and electricity prices. These prices have led to a loss of competitiveness for energy-intensive goods, which are considered Germany’s strength in the global market.
Fiscal Policy Tightening
The German economy is also suffering from the government’s sharp tightening of fiscal policy as it prepares for the return of the constitutional debt brake. This policy limits the amount of new debt that can be issued by the government.
Worst Performing Major Economy
Germany’s economy was the worst performing major economy in the world last year. However, next year’s forecast expects growth to pick up to 1.4%.
Contributing Institutes
The “diagnosis” was compiled by the following economic research institutes in Germany: DIW in Berlin, IfW in Kiel, IWH in Halle, RWI in Essen, and Ifo in Munich.
SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 8: Decent Work and Economic Growth | Target 8.1: Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7% GDP growth per annum in the least developed countries | Indicator not mentioned in the article |
| SDG 9: Industry, Innovation, and Infrastructure | Target 9.2: Promote inclusive and sustainable industrialization and, by 2030, significantly raise industry’s share of employment and GDP | Indicator not mentioned in the article |
| SDG 12: Responsible Consumption and Production | Target 12.2: By 2030, achieve the sustainable management and efficient use of natural resources | Indicator not mentioned in the article |
| SDG 13: Climate Action | Target 13.3: Improve education, awareness-raising, and human and institutional capacity on climate change mitigation, adaptation, impact reduction, and early warning | Indicator not mentioned in the article |
1. Which SDGs are addressed or connected to the issues highlighted in the article?
- SDG 8: Decent Work and Economic Growth
- SDG 9: Industry, Innovation, and Infrastructure
- SDG 12: Responsible Consumption and Production
- SDG 13: Climate Action
The issues highlighted in the article are connected to these SDGs because they discuss the economic outlook of Germany, including factors such as low domestic demand, high gas and electricity prices, and the impact on exports. These issues are relevant to achieving decent work and economic growth (SDG 8), promoting inclusive and sustainable industrialization (SDG 9), responsible consumption and production (SDG 12), and addressing climate action (SDG 13).
2. What specific targets under those SDGs can be identified based on the article’s content?
- Target 8.1: Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7% GDP growth per annum in the least developed countries
- Target 9.2: Promote inclusive and sustainable industrialization and, by 2030, significantly raise industry’s share of employment and GDP
- Target 12.2: By 2030, achieve the sustainable management and efficient use of natural resources
- Target 13.3: Improve education, awareness-raising, and human and institutional capacity on climate change mitigation, adaptation, impact reduction, and early warning
Based on the article’s content, the specific targets that can be identified are related to sustaining economic growth (Target 8.1), promoting sustainable industrialization (Target 9.2), achieving sustainable resource management (Target 12.2), and improving education and awareness on climate change (Target 13.3).
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
No, the article does not mention or imply any specific indicators that can be used to measure progress towards the identified targets. It focuses more on the economic outlook and factors affecting Germany’s GDP growth.
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Source: euronews.com
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