BERLIN, Nov. 9 (Xinhua) -- The German government presented a package of measures on Thursday to support the country's industry by reducing electricity prices over the next five years.

       In 2024 alone, the relief offered to the country's manufacturing companies will total 12 billion euros (12.84 billion U.S. dollars). "This is very good news for Germany as a business location," German Chancellor Olaf Scholz said in a statement.

       The electricity tax for manufacturing companies is to be reduced from 1.5 eurocents per kilowatt hour (kWh) to the European Union (EU) minimum of 0.05 eurocents/kWh. In addition, existing subsidies for particularly energy-intensive companies will be widened and extended by five years.

       The announcement comes at a time when the German economy is at the brink of a recession. The German Council of Economic Experts on Wednesday significantly lowered its 2023 gross domestic product (GDP) growth forecast to minus 0.4 percent. In 2024, the country's economy is to grow again by 0.7 percent, it said.

       "The current economic development in Germany is still burdened by the energy crisis and the fall in real incomes," commented Monika Schnitzer, chairwoman of the council.

       German industrial production already fell for the fourth month in a row in September, down 1.4 percent on the previous month. The pharmaceutical industry, which is part of the chemical industry, the largest energy consumer, recorded the sharpest decline at 9.2 percent.

       Economic experts have warned that Germany would jeopardize its international competitiveness if no countermeasures were taken. According to a recent study by the German Economic Institute (IW) and Frontier Economics, long-term disadvantages in energy costs could have resulted in a welfare loss of up to 4.5 percent over the next 15 years.

       StarPicks

       Unlocking financial freedom together