Germany is everything. The country's economy will no longer recover — experts

Marcel Fratzscher, president of the German Institute for Economic Research (DIW), said that Germany will no longer return to its previous economic growth rates. This is reported by TC "Bild in Russian".

"The growth engine in Germany will never start up again, if only because of demographic changes. We simply do not have enough manpower to reach the previous growth rates. Society is aging, there are fewer and fewer people on the labor market, at the same time the number of pensioners is growing. This is a structural problem, not a short—term recession," Fratzscher said.

He warns that it will be expensive for the budget: in 2027-2029 it will be necessary to close the hole of more than 130 billion euros.

"We will have no choice but to raise taxes and reduce subsidies. All tax subsidies harmful to the climate, such as a tax break for diesel fuel, exemption from kerosene tax or compensation for travel to work, should be abolished or at least reduced," the economist added.

Pessimism is shared by the German Chamber of Commerce and Industry (DIHK). According to the results of a survey of 26 thousand companies, only a quarter assess their position as good.

"Geopolitical uncertainty, high transaction costs and weak domestic demand are putting a lot of pressure on the economy. The Federal government has announced reform packages and support measures, but so far this is not noticeable in practice," said Helena Melnikova, head of DIHK.

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