According to a report by the Center for Economic and Business Research (CEBR), the newly published economy The German economy is expected to continue to grow slowly in the coming years. It is expected that by 2027 this country will lose its position as the fourth largest economy world in the hands of India.
According to research, one of the reasons why the German economy is assessed to be weak is due to the manufacturing sector. of this country depends on Russian energy.
“Supply problems have seriously affected Germany’s manufacturing industry in recent years, especially in the context of rising global energy prices strongly in 2022. Germany’s dependence on energy supplies from Russia has exacerbated this problem,” the CEBR report pointed out.
Also according to the energy price shock report has contributed to boosting inflation in the EU’s largest economy. Price growth in 2023 is forecast at about 6.3%, lower than 8.7% in 2022 but still higher than the recent average.
“High inflation is one of The reasons are reducing spending power and limiting consumption activities. This has a certain impact on consumer services,” CEBR wrote.
Germany’s gross domestic product (GDP) has could decrease by 0.4% in 2023, the lowest growth since 2009 if not counting the pandemic year of 2020. Limited spending power supply and tightening interest rates are one of the causes of this problem. CEBR forecasts that the German economy will grow again in 2024 at a rate of 0.7%.
In addition, CEBR’s report predicts that global GDP will increase more than twice to reach 219 trillion USD. by 2038. This is thanks to “the expansion of once underdeveloped economies as they catch up and overtake traditionally rich countries”. Vietnam, Bangladesh and the Philippines are countries named in the list of the strongest growing economies.
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