German industrialists: More and more likely the technical recession in Germany

‘ A technical recession in the winter semester 2023 – 2024 is becoming more and more likely” according to an announcement issued today (07.03. 24) its Federal League (BDI). “Economic production (p. in Germany) declined in the fourth quarter, after stagnation in the summer semester,” noted the industry liaison. Consumer spending of private households is likely to recover only slowly. The high increase in nominal wages and the fall in inflation stabilise real income,” noted German industrialists. They also stress that “investment activity may be delayed this year. Construction investments continue to suffer from weak housing construction. External trade is expected to gradually recover in the second half of the year, as the volume of world trade increases. At the moment there will be no significant development impetus. Industrial production declined again last year by 1.2%. With the reduced capacity utilisation and the lack of orders, there is no improvement yet.’ From the BDI point of view, it is stressed that “economic production will increase by 0.3% this year and the increase in consumer spending will, in this respect, compensate for the fall in capital investment. “