Germany cuts 2024 growth forecast as economic woes pile up

(ANSA-AFP) - BERLIN, FEB 21 - The German government slashed its growth forecast for 2024 on Wednesday, warning that Europe's largest economy was in "rough waters" as it battled a series of headwinds. The economy ministry now sees output expanding by a mere 0.2 percent this year, as weak exports, high interest rates and a stuttering green transition hold back the recovery. In its autumn projections, the government was still expecting 1.3 percent growth. The downward revision comes after the German economy shrank by 0.3 percent in 2023, and recent data suggest the first quarter of 2024 could see another contraction. A swift and strong rebound is not on the cards, with the economy ministry forecasting annual growth potential capped at around 0.5 percent on average up to 2028, according to the latest report. (ANSA-AFP).