Markets News Report
January 10, 2024

German Tech Sector to Excel Amid Economic Struggles in 2024, Reveals Study

German Tech Sector to Excel Amid Economic Struggles in 2024, Reveals Study

Germany’s Information Technology and Telecommunication (ITC) sector is expected to perform better this year and seems to outperform the country’s sluggish growth forecasts, as per a study conducted by the German digital association Bitkom.

The International Monetary Fund’s estimates suggest that Germany‘s overall economy is set to grow by only 0.9% in 2024, falling below the average of 1.4% for advanced economies. Despite this, the study indicates that the ITC sector may see a 4.4% surge in the sector’s revenues, reaching 224.3 billion euros ($245.09 billion), in contrast to last year’s modest 2.0% increase, as Reuters also reported.

“Even under challenging economic conditions marked by geopolitical crises and budget constraints, both sales and employment within the sector are on the rise,” said Ralf Wintergerst, president of Bitkom.

However, the projected growth for the ITC sector in Germany is comparatively modest when compared to other nations. India is expected to experience a 7.9% growth, the United States is foreseen at 6.3%, and China is estimated to achieve a 5.7% expansion.

Wintergerst emphasized the need for Germany to enhance its efforts in digitalization, urging both companies and administrations to escalate their investments.

Germany’s $547 Million Bet on AI

Recently, Germany committed to allocating over $547 million (€500 million) towards artificial intelligence (AI) research and innovation by 2024, marking a strategic investment in supercomputing infrastructure, skills development, support for women-led research groups, and the creation of 150 new professorships.

Bettina Stark-Watzinger, the country’s research minister, presented the new AI Action Plan as a critical step towards achieving “technological sovereignty” and reducing dependence on external influences. Emphasizing the importance of European collaboration in AI development, Stark-Watzinger highlighted the need for increased cooperation within the EU, citing France and Scandinavian countries as key partners.

In a press conference to launch the plan, she stated, “The aim is now that Germany and Europe, in a world powered by AI, can take a leading global position.”

The initiative reflects Germany’s commitment to positioning itself at the forefront of AI advancements and fostering collaboration with EU counterparts to strengthen the region’s collective standing in the global AI landscape.

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About The Author

Kumar is an experienced Tech Journalist with a specialization in the dynamic intersections of AI/ML, marketing technology, and emerging fields such as crypto, blockchain, and NFTs. With over 3 years of experience in the industry, Kumar has established a proven track record in crafting compelling narratives, conducting insightful interviews, and delivering comprehensive insights. Kumar's expertise lies in producing high-impact content, including articles, reports, and research publications for prominent industry platforms. With a unique skill set that combines technical knowledge and storytelling, Kumar excels at communicating complex technological concepts to diverse audiences in a clear and engaging manner.

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Kumar Gandharv
Kumar Gandharv

Kumar is an experienced Tech Journalist with a specialization in the dynamic intersections of AI/ML, marketing technology, and emerging fields such as crypto, blockchain, and NFTs. With over 3 years of experience in the industry, Kumar has established a proven track record in crafting compelling narratives, conducting insightful interviews, and delivering comprehensive insights. Kumar's expertise lies in producing high-impact content, including articles, reports, and research publications for prominent industry platforms. With a unique skill set that combines technical knowledge and storytelling, Kumar excels at communicating complex technological concepts to diverse audiences in a clear and engaging manner.

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