‘Economy in troubled waters’: Germany cuts its growth forecast as it struggles with high interest rates, lagging investment

The German government has revised its growth forecast downwards for the largest economy in Europe, citing challenges such as a shortage of skilled labor, bureaucratic hurdles, high interest rates, and insufficient investment in new ventures. Despite efforts to implement tax breaks for businesses, progress on this front remains stalled in the legislature.

The updated growth forecast now stands at 0.2%, a significant reduction from the previous projection of 1.3% made last fall. This adjustment comes after the economy contracted by 0.3% over the course of the previous year.