Germany continues to face significant challenges with regard to economic growth.

According to German Finance Minister Christian Lindner on Thursday, economic development is still a significant concern for the country.

“Growth is still a significant problem”, he noted. Lindner also stated at a Handelsblatt event that "we need to strengthen growth in Germany, not through government demand programmes that could fuel inflation, but more on the supply side."

Linder believes the government's top aim is to combat inflation by implementing a fiscal policy that is "moderately restrictive" in accordance with the European Central Bank's tightening of monetary policy.

In regard to broad fiscal measures that can increase inflation and prolong the central banking effort to control it, Lindner remarked, "It is like a fire - not only the fire is dangerous, but also the water to extinguish it could be dangerous."

The debt ratios and the deficit ratio in the national budget, reported by the finance minister, are declining this year for the first time since the pandemic in 2020.

In relation to the 2024 budget, he added, "We have record investments despite the return to a relatively tight fiscal approach.

The fiscal plan anticipates investing €54.2 billion over the next year.

(Sources: investing.com, reuters.com)