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Investment Environment

Strong Economy

The effects of the energy price crisis in conjunction with the challenges of the global economy – high inflation and the war in Ukraine - are weighing on the German economy more persistently than expected in spring. However, the German economy is expected to develop some momentum at the turn of the year and get back on a growth path in 2024.

According to data from the Federal Ministry for Economic Affairs and Climate Action, Germany’s GDP will experience a slight decline of 0.4 percent in 2023. In its autumn forecast 2023 the German Government expects GDP to grow and recover in 2024 and 2025 by 1.3 and 1.5 percent respectively.

German Economic Performance
Private Consumption3.9-
Gross Fixed Capital Investment0.
Price adjusted year-on-year changes (in %) *Forecast Source: Federal Ministry for Economic Affairs and Climate Action 2023

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