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State of the European and German Economy
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By Papa Saliou DIOP, Alexander KASTENDEUCH Patrick LOCH, EY Luxembourg*
Europe stands at a critical point, needing to enhance its competitiveness and attractiveness amid global competition for investments. According to the latest EY research(1) Europe’s foreign direct investments declined by 4% in 2023, marking the first annual downturn since 2020. Current projections from the International Monetary Fund(2) released in October 2024, indicate a stagnation of Germany’s economy for 2024 – Europe’s biggest economy. At the same time, growth is expected in all the other G7 countries.
In addition to the current difficult economic environment resulting from high inflation, volatile energy prices, supply issues, and high interest rates, Europe,...
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