Buy against the crisis: How Germans could save the economy!
Buy against the crisis: How Germans could save the economy!
The current economic situation in Germany is worrying, and Federal Minister of Economics Robert Habeck has now officially confirmed this. After he originally forecasted the growth of the German economy for the current year, he recently had to revise his expectations. Instead, you now assume further minus growth, which means that Germany could be in a recession in a row in the second year. This finding brings significant effects for consumers both on the mood and the consumer behavior.
In the past few months, the Germans have increasingly kept their money together. This development is due to various factors. The interest for overnight accounts were relatively high, which made the decision easier not to spend the money. Another reason is the increasing inflation that has affected almost all areas of life. The prices have indeed increased massively and the prospect of stabilizing inflation remains uncertain. Therefore, many consumers decided to hoard their money than to spend it in uncertain times.
calming the inflation
<, however, there are signs of possible stabilization of prices. In September, consumer prices in Germany only increased by 1.6 percent, which has been the slowest increase in three years. This development could point out that the worst times of inflation may be behind us. A decline in inflation could mean that loans will be cheaper again in the future. At the same time, it is expected that interest rates will fall on savings.If this is the case, there could be a rethink in consumer behavior that ultimately contributes to the revival of consumption and investments. This new economic activity could be crucial to strengthen internal demand - an important step to compensate for German export weaknesses.
af_incremental_error: user friendliness 2.
For a positive development of the economy, it will be due to the German consumers to put confidence in the markets again. The decline in inflation could create incentive to bring the money back into circulation and thus boost the economy. At a time when the global economic challenges increase, strong internal demand is essential to cope with the challenges of the recession and to stabilize the economy. Consumers are therefore required to play a more active role and strengthen their consumption.
In order to promote economic recovery, targeted government and the central bank should also be considered. These could aim to boost both investments and consumption. These considerations are necessary so that Germany can bring its economy back to the right course.
Kommentare (0)