(Bloomberg) — German Chancellor Olaf Scholz is optimistic about his country’s economic outlook, citing record employment and slowing inflation due to lower energy costs.
Most Read Articles on Bloomberg
“Since the beginning of the year, production in these energy-dependent sectors, like the industry as a whole, has increased significantly,” Scholz said on Sunday, also mentioning the possibility of European Central Bank interest rate cuts and benchmark increases. did. DAX index, growing confidence of German businesses and consumers.
Speaking at the opening ceremony of a major trade fair in Hanover, Scholz said: “Above all, and in my opinion the most important thing, despite inflation and a temporary decline in production, the industry “Real gross value added is stable.”
“German industry’s contribution to growth, prosperity and employment continues unabated,” he added.
Germany’s economy, Europe’s largest, may have avoided a winter recession thanks to a rebound in manufacturing, rising exports and a surge in construction at the start of the year, Germany’s Bundesbank admitted last week.
Data to be released in the next few days will confirm this story, with the initial results of the Monthly Purchasing Managers Survey expected to be released on Tuesday and the Ifo Business Confidence Index showing improvement the following day. Probability is high.
The possibility of an economic upturn has not helped Scholz’s Social Democratic Party’s electoral prospects. According to INSA’s latest poll for Bild am Sonntag, the party has just 15% support in national opinion polls, trailing the Christian Democrats at 30% and the far-right Alternative for Germany party at 18%. I’m taking the lead.
The ruling coalition, made up of the Greens and Liberal Democrats, is trying to win back voters, but Scholz said on Sunday the government was in discussions on how to extend the electricity price brake beyond 2027. He also suggested Berlin’s policy. The next growth package could include further tax incentives for research and development.
–With assistance from Michael Nienaber.
Most Read Articles on Bloomberg Businessweek
©2024 Bloomberg LP
