Germany Economic Snapshot
Economic Forecast Summary (June 2023)
Economic Outlook Note - Germany
The economy is projected stagnate in 2023 and grow by 1.3% in 2024. High inflation is reducing real incomes and savings, damping private consumption. Export growth will recover through 2023 due to easing supply chain bottlenecks and a record-high order backlog. Investor and consumer confidence have improved due to strong energy price support, swift substitution of energy imports from Russia and declining energy prices.
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Read full country noteEconomic Survey of Germany (May 2023)
After a decade of strong export-led growth, decreasing unemployment and fiscal surpluses, the COVID-19 pandemic and the energy crisis have revealed structural vulnerabilities and emphasised the need for accelerating the green and digital transitions.
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Going for Growth: Economic Policy Reforms (April 2021)
Going for Growth 2021 - Germany
The pandemic is likely to accelerate digitalisation with new business models and increases in demand for teleworking, telehealth services and remote learning. The energy transition requires changes in behaviour, consumption and production. In order to face these challenges while supporting the recovery, Germany needs to boost investment in infrastructure and knowledge-based capital, revive business dynamics and address skills bottlenecks.
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Read full country note2021 Structural Reform Priorities
- Infrastructure: Boost infrastructure investment
- Competition and regulation: Promote reallocation by removing barriers to firm growth and incentivising investment in expanding industries
- Education and skills: Strengthen skills to cope with technological change
- Labour market: Make it easier for parents to choose flexible working hours
- Tax system: Reduce tax wedges on labour income and shift taxation towards less distortive taxes