breaking news
The leading economic institutes in Germany have drastically revised their forecast downwards. They are only assuming very low growth of 0.1 percent. In the fall they had assumed 1.3 percent.
Economic researchers only see growth of 0.1 percent for the current year. In their joint diagnosis, the leading institutes point to “economic and structural factors” because of which they have revised down their autumn forecast of 1.3 percent growth.
“Level barely above the corona pandemic”
When presenting the forecast in Berlin, you spoke of “headwinds” for the German economy from both at home and abroad. “The economy in Germany is ailing.” In 2023, economic output in Europe’s largest economy fell by 0.3 percent. According to institutes, economic performance is currently at a level that is barely higher than before the corona pandemic. “Since then, productivity has stalled.”
Although the economy is likely to begin to recover from spring onwards, the overall momentum will not be too great. In the current year, private consumption is becoming the most important driving force for the economy, and in the coming year, foreign business will also increase.
After all, the researchers only expect inflation to reach 2.3 percent and real wages to rise. For 2025, the institutes are leaving their forecast almost unchanged at plus 1.4 percent.
The Ifo Institute in Munich, the Leibniz Institute for Economic Research in Halle, the Kiel Institute for the World Economy, the RWI Leibniz Institute for Economic Research in Essen and the German Institute for Economic Research in Berlin are involved in the spring joint diagnosis. The federal government uses your report as a basis for its own forecast.