Economy: "I see a great danger": Institutes are worried about government debt in Germany
Germany is experiencing an economic upswing. But the leading institutes are far from euphoric - because new calculations on government debt show significant risks.
Germany's leading economic research institutes, including Ifo München, DIW Berlin, IWH Halle, Kiel-Institut, and RWI Essen, have released a joint forecast, or "Gemeinschaftsdiagnose", predicting a 1.3% growth in GDP for this year and 1.1% for next year. The forecast also predicts an inflation rate of 3.2% next year, but a return to 2% thereafter.
Despite the economic growth, the institutes warn of underlying structural problems and concerns about government debt. The forecast is titled "Aufschwung mit Strukturproblemen – Finanzpolitik auf Abwegen", or "Upswing with structural problems - fiscal policy off track".
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
