Development aid: This is how the German economy benefits from it!

Development aid: This is how the German economy benefits from it!

Berlin, Deutschland - Berlin - A dramatic cut for the German economy is imminent! The traffic light government is planning a drastic reduction in the development budget that could bring the economy in Germany into a critical situation. In 2025, the funds for global development cooperation are to be reduced by more than eight percent. Instead of the previous 11.22 billion euros, only 10.28 billion euros are planned. An incision of almost one billion euros that could endanger economic relationships with developing countries!

The question of whether development aid actually benefits the German economy is getting louder. However, a current study by the University of Göttingen shows that every euro of development aid leads to an increase in German exports by 36 cents! Between 2013 and 2023, the help ensured an annual export plus of 7.9 billion euros. Minister Christiane Laibach from KfW emphasizes that development cooperation not only fights global crises, but also improves living conditions in partner countries and thus has positive effects on German export management.

economic interdependencies on the bracket

But the impending cuts could endanger all of this! The study emphasizes that higher incomes in recipient countries increase demand for German goods. However, this positive development could stall if the federal government drastically shortens the funds for development cooperation. With 139,000 jobs that are secured by state funds for development in poorer countries, a lot is at stake. The international integration, which is of crucial importance, especially in times of crisis, could be weakened.

The traffic light government is now faced with the challenge of finding the balance between budget cuts and securing jobs as well as export opportunities. The decision to drastically reduce the funds for development cooperation could not only affect the German economy, but also international relations. Time is pushing and the effects of this decision are already noticeable!