German Minister for Economic Affairs and Climate Protection Robert Habeck to deliver statement on 2022 economic report
The German Minister for Economic Affairs and Climate Protection Robert Habeck will deliver the government statement on its 2022 annual economic report today.
The 2022 annual economic report revealed dampened growth expectations for 2022, with a projected 3.6% GDP growth instead of the earlier predicted 4.1%, due to the continued economic effects of the COVID-19 pandemic. However, the report broke with established convention by focusing on five indicators rather than solely on GDP growth. It aims to transform Germany into a “social-ecological market economy” as opposed to the current model of a social market economy, likely an attempt by the government to appeal to younger voters who support greater environmental protections. These five areas are roughly divided into growth, employment, environment, education and sustainability.
Ultimately, a strong performance in these areas is unlikely to boost the government’s support if the traditional GDP metric suffers. In terms of employment, the unemployment rate is projected to drop from 5.7% in 2021 to 5.1% in 2022, low rates associated with COVID-19 related government employment support. In the longer-term, the government will phase out employment support, which may put upward pressure on unemployment in sectors that are yet to recover.
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