German Economy: Excessive Savings Harming Growth

Germans are saving more than necessary, negatively impacting the country's economy, according to economists. Proposals include even imposing a tax on savings accounts as a "warning signal" to citizens.

According to a YouGov Institute poll, 75% of Germans consider saving to be prudent, despite wage increases. Katharina Gangl, director of the Nuremberg Institute for Market Decisions (NIM), attributes this mainly to recent post-pandemic inflation.

Gangl suggests the government impose a tax on savings accounts, not for revenue, but as a "warning signal," advising consumers to consider alternative investments.

Danish economist Erik Nielsen, in an interview with Der Spiegel, argues that German "pessimism" is excessive compared to the US, emphasizing that Germany has a remarkable degree of stability.

Nielsen expects additional spending on infrastructure and defense to provide economic momentum, and predicts that Germany could grow even faster than the US in the next two years.