By no means a small plus: the German economy will probably shrink this year after all. The Ifo Institute expects 0.4 percent less economic output for 2023 as a whole, according to the Munich researchers on Wednesday. After initial optimism, other researchers are also predicting a minus. The main reason for this is inflation, which is spoiling consumer spending and is only expected to decrease slowly. As a result, people in Germany are likely to experience another disappointing year. Their wages have been falling in real terms, i.e. minus inflation, since the early 2020s.
Inflation: why the German economy is shrinking after all – Economy
