The German Economy Ministry said it doesn’t expect the country’s economy to recover sustainably in the coming months, based on preliminary indicators such as new orders and business sentiment.
At the local level, the expected cautious recovery in the consumption, services and investment sectors indicates signs that may be strengthened as we move forward in 2023, according to the German Economy Ministry monthly report.
Meanwhile, with the continued weakness of external demand, geopolitical uncertainty, rates of price hikes that remain high, and the increasing effects observed as a result of monetary tightening policies prevent a strong economic recovery.
Germany is exposed to many simultaneous challenges to the economy, as inflation rates are still flying far from the European Union’s target of 2%.
In addition to high interest rates within policies aimed at curbing inflation and its impact on investment and industry, in addition to the energy crisis and the impact of slowing recovery in China, and various internal factors, including a shortage of labor, and other factors facing the largest economy in Europe.
These indicators reflected in the Germans’ confidence in the government and the policies of German Chancellor Olaf Scholz.
According to new survey in Germany, the majority of Germans feel abandoned by the government, with around 80% said in the survey that they consider the current German economic situation is unfair.
This percentage shows sharp increase compared to 2021, when 32% of Germans said that their economy is unfair and in bad shape.
The recent survey showed that 60% of Germans sees that their society is divided, mainly between the rich and the poor, in an increase of 20% from survey results taken last year.