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MNI INTERVIEW: Germany Faces Low Investment, Growth - IW Koeln

(MNI) LONDON

Domestic uncertainty and cheaper foreign energy will make Germany less attractive to firms, Markus Demary tells MNI.

Germany faces a prolonged period of slow growth and declining market shares, but core inflation is likely to remain high as supply- and energy-driven price rises give way to an upward trend in domestic demand pressures, senior German Economics Institute (IW Koeln) economist Markus Demary told MNI.

Inadequate state spending on infrastructure means firms may take advantage of lighter labour regulation and better green subsidies outside Germany, and. falling levels of corporate investment mean many companies will fail to meet government climate neutrality targets, Demary said in an interview.

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Germany faces a prolonged period of slow growth and declining market shares, but core inflation is likely to remain high as supply- and energy-driven price rises give way to an upward trend in domestic demand pressures, senior German Economics Institute (IW Koeln) economist Markus Demary told MNI.

Inadequate state spending on infrastructure means firms may take advantage of lighter labour regulation and better green subsidies outside Germany, and. falling levels of corporate investment mean many companies will fail to meet government climate neutrality targets, Demary said in an interview.

Keep reading...Show less