Germany expects weaker rebound next year after 2023 contraction

Robert Habeck, the Economy Minister, has blamed the economy’s issues on the energy crisis, rising borrowing costs and the weakness of trading partners

Robert Habeck, Germany’s Economy Minister, said the energy-price crisis had contributed to the country’s economy problems. Picture: file

The German government has forecast a contraction this year in its updated economic outlook and predicted weaker-than-expected growth in 2024 due to the lingering effects of the energy crisis.

Gross domestic product will likely shrink by 0.4 per cent in 2023, the Economy Ministry said in Berlin, paring back a predicted 0.4 per cent expansion published at the end of April. Next year, the ministry has forecast growth of 1.3 per cent, weaker than the ...