Despite positive forecasts: Rich people: economic growth is on shaky ground

The federal government is likely to significantly increase its growth expectations. However, this is no reason for Economics Minister Reiche to give the all-clear: ahead of the coalition's crucial weeks, she points to unresolved problems.

Federal Minister of Economics Katherina Reiche emphasizes the need for structural reforms despite an expected higher economic forecast from the federal government. The CDU politician said in the Bundestag that growth is still on shaky ground. "The situation remains fragile." Germany is burdened by external crises such as the Iran conflict. "But above all, we also have homework to do."

The shackles need to be released, said Reiche. She cited more flexible working hours, stabilization of social security contributions, less bureaucracy and competitive energy prices. The black-red coalition is facing groundbreaking weeks. Measures on the labor market and pension reform are controversial.

Reiche will present the federal government's autumn projection tomorrow, Thursday. It is expected that the government, like leading economic research institutes, is now expecting an increase in gross domestic product of 1.3 percent for the current year. Reiche said growth was driven by stronger exports and government spending to modernize infrastructure.

In the spring, as a result of the Iran war and price jumps for oil and gas, the federal government lowered its economic forecast to growth of 0.5 percent.

The International Monetary Fund wants to comment in more detail on Tuesday how the global economy is developing and where there could be problems. On this day the fund presents its new economic forecast. In July, the IMF predicted global growth of 3.0 percent for the current year, and an increase of 3.4 percent is expected for 2027. The IMF expects an increase of 0.7 percent for Germany this year, and the economy is expected to grow by 1.0 percent in 2027.