Structural Weaknesses in the German Economy must ‘Absolutely’ Be Addressed, Finance Minister Says

It is crucial that Germany Embarks on a period of Economic Growth, The Country’s Finance Minister Jörg Kukies Told CNBC on CNBC on CNBC on CNBC on CNBC on CNBC on CNBC

“We’ve just gotten revised Down Growth Forecasts for the Imf Again,” Kukies Told CNBC’s Karen Tso and Steve Sedgwick at the World Economic Forum in Davos.

“The structural weaknesses of our economy absolutely have to be addressed,” He added. “It’s really important that we embark on a path of economy growth.”

Germany’s Annual Gross Domestic Product declined in both 2023 and 2024. Quarterly gdp readings have also been also been

The International Monetary Fund (IMF) is currently Forecasting 0.3% GDP Growth in Germany for 2025 and 1.1% for 2026, according to the January update to its world economic outlook. It marked a stark downgrade from its October Forecast of 0.8% Growth in 2025.

Kukies also addressed the debate over Germany’s so-called debt brakeA fiscal rule enshrined in the German Constitution. The Debt Brake Limits How Much Debt The Government Can take on, and dictates that size of the federal government’s structural budget deficit message 0.35% of the country ‘

The finance minister said some “targeted reforms” Culture Etcetera. “

“But the Vast Majority of Investment (…) in our country has to come from the private sector,” He added, say the right that the right investments for private investors to “Rediscover Germany” Wi Neededed.

Kukies said german companies were still doing “very well” when it comes to their global businesses – which is reflected in their Share price performance – But was “under stress” domestically.

“So that’s the problem that we have to fix,” He said. “We just need to offer them better conditions to invest and do research and development in Germany.”

Kukies became Germany’s Finance Minister in November, Taking Over from Christian Lindner Who was Sacked By Chancellor Olaf Scholz after Months of Wrangling and Clashes Over the Economy and Budget.

Lindner’s dismissal effectively an end to the former German ruling coalition, which was made up of scholz ‘Social democratic party, Lindner’s free democratic party and the Green Parthy. This, in Turn, Saw Germany’s National Election Moved Forward to Feb. 23.

“The election is all about Economics,” Kukies Added.

The idea of ​​tariffs have been met with widespread concert from european leaders about what they could make mean for economies in the region. Germany is seen as particularly vulnerable as trade is a key pillar of the country’s economy; The US is its Biggest Export Trade PartnerAccording to the Country’s Statistics Office Destatis.

Kukies on Thursday said that Germany’s Vulnerability to Tariffs was “natural” Given the economy’s expense expensure to trade, but sugged that trade relationships with the us COUS COULD BECOLD BECEDE EUNDE EUNATIONS.

“I do think, and some of the statements that we’ve heard also indicate, that there’s also interest in interested strengthening the trade ties becase bot the US and germany has a lot to eat revealed in terms of Eervices, Machines, cars, “He said.