An earlier forecast by the Berlin-based German Institute for Economic Research (DIW), the Munich Institute for Economic Research (Ifo), Institute of the World Economy of the University of Kiel (IfW), from the Rhine-Westphalian Institute for Economic Research in Essen (RWI) and the Institute for Economic Research in Halle (IWH), predicted an increase in Germany’s gross domestic product of 1.3 percent in 2024.
Federal Statistical Office (Destat) according to preliminary data, the country’s economy shrank by 0.3 percent last year.
Economists have warned that domestic demand is growing more slowly than expected, while exports are being held back by high energy prices, which are reducing the competitiveness of German energy-intensive goods.
“Cyclical and structural factors determine weak economic growth. Recovery may start in the spring, but the overall growth rate will not be strong, said Stefan Kooths, head of economic research at IfW.
It is predicted that next year the German economy will grow faster – 1.4 percent.
Expected inflation in the country in 2024 – 2.3 percent, in 2025 – 1.8 percent.
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