Study Predicts 4.4% Revenue Increase in German Digital Sector; Lags Others

Summary

  • The revenues of the German sector are expected to rise by 4.4% to 224.3 billion euros ($245.09 billion).
  • Bitkom President Ralf Wintergerst acknowledges the sector’s growth despite economic challenges.
  • Despite the expected growth, the sector’s performance lags behind other economies like India, the U.S., and China.
  • Wintergerst advocates for greater investment in digitization to boost economic growth.
  • Germany’s total economic growth is projected at 0.9% in 2024, below the average of advanced economies.
  • The exchange rate used is $1 = 0.9152 euros.

Economic Projection

An increase of 4.4% to 224.3 billion euros ($245.09 billion) is predicted for the sector’s revenues, as per the study. This marks a rise from the 2.0% increase registered in the previous year.

“The sales and employment are on the rise within the sector, even amid tough economic situations marked by geopolitical crises and budget cuts,” announced Bitkom President Ralf Wintergerst.

Comparative Analysis

In comparison to other countries though, the industry’s forecasted growth for this year is slower. For instance, India is set for a 7.9% rise, the U.S. anticipates a 6.3% hike, and China projects a 5.7% growth.

Digitization and Economic Growth

Wintergerst emphasized the necessity for German companies and administrations to enhance their investments significantly for digitalization. He calls on the government to prioritize digitalization and economic growth in its policies.

International Monetary Fund’s Outlook

According to the International Monetary Fund’s estimates, Germany’s overall economy is expected to grow merely 0.9% in 2024. This projection is considerably lower than the 1.4% average for advanced economies.

The conversion rate applied here is $1 = 0.9152 euros.

The predicted growth in this sector can impact forex trading based on the expected increase in revenues. Particular assets, like multinational digital firms operating in Germany, could be positively affected.

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