Economic Growth in Germany Expected to Turn the Corner, Says Expert
A member of the German Council of Economic Experts, Ulrike Malmendier, has expressed optimism about the country’s economic prospects, stating that a rebound is imminent. “There is certainly hope that it will start going up again, maybe not this year, but next” Malmendier told the Frankfurter Allgemeine Zeitung.
The expert’s confidence is not shaken by the recent trade tensions, with the US imposing tariffs on German goods. The Council of Economic Experts is set to publish its spring report on the state of the economy on Wednesday, with Malmendier cautioning that the outcome will depend on the global economy and geopolitical developments. “There is a scenario in which Trump could drag us into a global recession, from which we may not be able to recover quickly” she warned.
Malmendier also expressed skepticism about the new German government’s plan to establish expert commissions on key issues such as retirement and the healthcare system. “I have had no good experiences with such commissions, especially when the end result is a long list of 317 possible measures, which then serve as a pretext for inaction” she said.
However, Malmendier remains hopeful that the generational shift in the government parties could lead to a more open-minded approach. “For some younger Social Democrats, the 48% pension cap is no longer an unbreachable red line. And the pension problems will only become more pressing” she noted.