Germany is not the “sick of Europe”, the president of the country’s central bank, the Bundesbank, Joachim Nagel, told CNBC on Wednesday, admitting at the same time that the economic growth “is not good this year”, reports news.ro.
Speaking at the IMF’s World Bank annual meeting in Marrakech, Nagel said we should not compare Germany’s current economic situation to when it was last described as “the sick man of Europe”.
Analysts first coined the name in 1998, as the country went through the costly fallout from a post-reunification economy.
“It is a completely different, different situation. Some structural changes are needed, but if we take, for example, the labor market, we still run the economy on employment, more or less. I think there is this understanding that we have to do something, but we are not the sick man of Europe,” said Nagel.”
Calculations and estimates
The debate over whether Germany should again be described as “sick” has been sparked by predictions that Europe’s biggest economy will be the only major European economy to contract in 2023.
“It’s not good this year, [dar] growth returns next year,” said Nagel.
The Bundesbank estimates that the German economy will grow by 1.2% next year, compared to the 0.3% decline it sees for 2023.
The International Monetary Fund has a slightly more pessimistic view, estimating that Germany will experience “continued weakness” in its growth and that the economy will expand by 0.9% in 2024, according to data published on October 10.
The IMF’s growth forecast for Germany is below the 1.2% average anticipated for the euro area.
2023-10-13 11:24:40
#Bundesbank #Germany #sick #Europe #year #good #Source #news
