Foreign
FOLLOWING fears of a looming recession, leading economic research institutes in Germany have raised their forecast for the current year.
It said that with the country’s gross domestic product (GDP) was now expected to grow by 0.3 per cent.
Last autumn, the experts, including from the Munich-based Ifo Institute, had still expected a decline of 0.4 per cent.
The economic setback in the winter months looks set to have been less severe than was initially feared in autumn, Info head researcher Timo Wollmershäuser said on Wednesday.
This was mainly due to a lower reduction in purchasing power due to a significant drop in energy prices.
However, Wollmershäuser said he only expected inflation rates to decline slowly, from 6.9 per cent last year to 6 per cent this year.
According to the forecast, inflationary pressure will only ease in the coming year, when the inflation rate is expected to fall to 2.4 per cent.
Germany’s GDP meanwhile is expected to increase by 1.5 per cent in 2024.
Germany’s four leading economic institutes are the Info Institute, the Halle Institute for Economic Research, the Kiel Institute for the World Economy and the RWI–Leibniz Institute for Economic Research issue.
Their joint report came twice a year, one in spring and one in autumn. (dpa/NAN)
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