In view of rising energy prices, leading institutes are outdoing each other with negative forecasts for consumers and the economy in Germany. The Halle Institute for Economic Research (IWH) is particularly pessimistic, predicting an inflation rate of 9.5 percent for 2023. This would be well above the inflation rate of 7.9 percent expected for the current year. According to the Kiel Institute for the World Economy (IfW), the worst is yet to come for consumers. If the prices for electricity and gas remain high for a longer period of time as a result of the Russian war in Ukraine, the inflation rate will skyrocket to 8.7 percent in the coming year. “The German economy is in a downward spiral,” is how the IfW economists summarized their forecast.”
IWH Halle – inflation will rise – economy
