(Finance) – The president of the Bundesbank Joachim Nagel hopes that the parties Out of the election winners (CDU and CSU) form “quickly” a new governmentto prevent the economy from being in recession for the third consecutive year. “There is a clear mandate and a probable option for a coalition,” underlined the President of the Bundesbankadding “Germany needs an effective government as soon as possible”.
“Even if a slight recovery is expected in 2025, Another year cannot be excluded without growth“Nagel admitted on the sidelines of the Bundesbank annual report.” For this reason it is even more important than the new Federal government quickly adopts effective measures“.
Just today the data of the GDP of the 4th quarter of Germany, who confirmed An economy still in recession. Based on the data of the German Federal Statistical Office Destatis, the GDP recorded a 0.2% descent on the quarter, in line with the consensus, and one contraction of 0.2% also on a tendential basis.
Nagel explained that the state of “persistent stagnation” of the German economy cannot be explained only by cyclical factors, but it is linked to structural problems that “play a key role”. Among the challenges The high prices of theenergyThe demographic changethe bureaucracy and the growing competition of emerging economies, but also the risks for the trade international and geopolitical tensions.