The German economy is in a recession. Things are not getting better – predicts a new forecast.
Leading economic research institutes want to lower their economic forecasts for the current and next year. A corresponding media report was confirmed to the German Press Agency by insiders. According to this, gross domestic product is likely to fall by 0.1 percent this year. In the spring, the institutes had predicted a minimal increase of 0.1 percent.
The forecast for the coming year has also been revised downwards. Growth of 0.8 percent is now expected. In the spring, the institutes had expected an increase of 1.4 percent.
On Thursday, the institutes will present their joint forecast for autumn 2024 in Berlin. These include the German Institute for Economic Research and the Ifo Institute. In the spring, the institutes wrote that the German economy was “ailing”.
Germany has been stuck in an economic downturn for some time. The federal government is planning a growth package. However, business associations believe the measures are not enough. They are calling for fundamental reforms and are complaining about high energy prices compared to other countries, too much bureaucracy and a shortage of skilled workers.
Source: Stern
