"The weakness of manufacturing and persistently weak economic growth suggest that the German economy is held back by both structural and cyclical headwinds," said Monika Schnitzer, the council's chair.
BERLIN, Nov. 13 (Xinhua) -- Germany is set to continue falling well behind other advanced economies in 2024, the German Council of Economic Experts said on Wednesday.
The council, which advises the German government on economic policy, has lowered growth forecasts for the country's economy in 2024 and 2025.
The updated forecast for this year expects a 0.1 percent decline in gross domestic product (GDP), down from an earlier prediction of 0.2 percent growth. Looking ahead to 2025, the council has also revised its growth forecast downward from the 0.9 percent it projected in the spring to 0.4 percent.
Germany's GDP has only grown by 0.1 percent in real terms over the past five years, meaning that its economic development continues to lag on an international level, the council said.
Germany's ongoing economic challenges are largely driven by a drop in manufacturing output and value-added, the council noted.
"The weakness of manufacturing and persistently weak economic growth suggest that the German economy is held back by both structural and cyclical headwinds," said Monika Schnitzer, the council's chair.
While Germany's economy is struggling with sluggish overseas demand, a shortage of skilled labor, and increasingly fierce competition, the global economy and industrial production are experiencing positive growth rates.
"The detachment of Germany's industrial sector from global economic trends suggests that its issues are not merely cyclical," the council added. ■
