BERLIN, Feb 21 Reuters The German government expects the economy to grow 0.2 this year, far less than a previously forecast 1.3, as weak global demand, geopolitical uncertainty and persistently high inflation dent hopes for a swift rebound.

Europe39;s largest economy shrank by 0.3 in 2023, making it the world39;s worst performing major economy, and it is broadly expected to enter another technical recession in the first quarter of this year.

The situation is challenging, extremely challenging, Economy Minister Robert Habeck said in a news conference presenting the government39;s 2024 economic report.

We have to do more … in order to strengthen and maintain Germany39;s competitiveness in a completely changed global environment, he said.

The economy is set to grow by 1 next year, Habeck said, adding that inflation is expected to be around 2 in 2025.

The government39;s report listed high inflation and a resulting loss of purchasing power among the challenges, as well as geopolitical crises and interest rate hikes.

The weakening global economy was also a reason for the reduced growth forecast, Habeck said.

The growth of German GDP is extremely dependent on world trade. Global trade is developing at a historically low level, he added.

Germany39;s economic advisers plan to follow the federal government39;s lead and reduce their forecast for economic growth in 2024, adviser Ulrike Malmendier told Reuters in an interview.

I think we will definitely be going in the…