Haebek German Deputy Prime Minister Introduces This Year's Economic Outlook Report
"Household and Business Support Programs Are the Driving Force for Improvement"
[Asia Economy Reporter Lim On-yu] The German government has withdrawn its forecast that the economy will contract this year due to a recession. It is analyzed that the energy crisis caused by Russia's invasion of Ukraine has passed its worst phase.
Robert Habeck, Germany's Vice Chancellor and Minister for Economic Affairs and Climate Action, presented this year's economic outlook report at the Bundestag on the 26th (local time).
Vice Chancellor Habeck forecasted that Germany's Gross Domestic Product (GDP) will grow by 0.2% this year. As recently as mid-October last year, the German government had expected a 0.4% contraction. In addition, the inflation rate is expected to slow to 6.0% this year, down from 7.9% the previous year.
At the Bundestag, Habeck said, "The numbers for this year's economic outlook are not good, but they are much better than what we were worried about just a short while ago," adding, "The inflationary trend has also been curbed."
At an earlier press conference, he said, "We have brought the crisis to a manageable situation," and "Our country has shown what it can do." This explains that Germany has overcome the worst of the energy crisis.
The improvement in the economic outlook is attributed to the German government's support programs for households and businesses. The German government decided to operate a support fund worth 200 billion euros (approximately 268 trillion won) to alleviate the burden on households and businesses caused by the sharp rise in energy prices.
Through this, brakes were applied to electricity and gas prices, and support funds were also provided to companies. The expenditure by the end of last year amounted to 29.5 billion euros (approximately 40 trillion won).
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