FX.co ★ German economic performance seen as ‘far from satisfactory’

The German economy is once again a cause for concern. Its state is far from perfect. Vice Chancellor Robert Habeck sees Germany in a difficult situation, suggesting that action is needed.

Habeck, who also serves as Federal Minister for Economic Affairs and Climate Action, pointed to poor economic figures signaling a slowdown. Despite a recent increase in orders, it is clear that Germany's economic performance is "far from satisfactory," the official said.

According to the expert, German stagnation is more persistent than previously anticipated. "What Germany needs is a targeted impulse for investment," he said, adding that this applies to both private and public investment.

The vice chancellor believes that Europe’s largest economy is currently experiencing its weakest growth in six years, weighed down by a number of factors, including a shortage of skilled workers.

Military spending adds fuel to the fire. According to Chancellor Olaf Scholz, Germany does not plan to reduce its military aid to Ukraine. The country intends to allocate an additional €4 billion for this purpose next year. Experts estimate that Germany's current defense spending is higher than that of other EU countries.