Business cycle: Economy is picking up - "economic wise men" see financial gaps
The economic situation in Germany is brightening up. But structural problems remain. The "economic wise men" are drawing attention to major financial problems.
Germany's economy is expected to grow by 1.3% this year and 1.0% next year, according to the Sachverständigenrat Wirtschaft, also known as the "Wirtschaftsweisen". The growth is driven by a strong export sector and increased government spending, but the council warns that huge financial gaps may appear in the federal budget in the long term.
The council's chair, Monika Schnitzer, says that hard decisions will be unavoidable to address the issue. The financial gap in the federal budget could be between 2.7% and 4.8% of GDP by 2040, equivalent to around 120-215 billion euros.
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.
