Germany’s economy is not in good shape, says finance minister

German Finance Minister Christian Lindner on Monday highlighted the need for structural reforms to strengthen Germany’s competitiveness, emphasizing that despite the economy being considered healthy, it is not in the best shape and is currently in a downturn. He pointed out that this is similar to the British economy, which was also referred to as a “tired man” in need of reforms during the World Economic Forum in January.

Lindner specifically mentioned the importance of reducing red tape, attracting workers into the labor market, and mobilizing private investment as key areas for reform. He also emphasized the need for creating a single capital market for private investment in the European Union, highlighting that subsidies alone are not a viable solution for long-term economic growth.

The German economy was the weakest among its large Eurozone peers last year due to high energy costs, feeble global orders, and record-high interest rates. This led some economists to label Germany as “the sick man of Europe.” However, Lindner disagreed with this assessment, stating that Germany is an unfit man in need of improvement rather than being sick. Despite being labeled “healthy,” Germany’s expected economic growth of 0.9% remains well below the 1.4% average for advanced economies in 2024.

By Editor

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