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MNI BRIEF: German Growth, Inflation Seen Lower In 2024 - ifo

(MNI) London

Germany is likely to grow this year even more slowly than previously expected, the ifo Institute said on Wednesday, although the bounce back in 2025 could be modestly better.

Ifo's growth forecast for the current year has been cut to 0.2%, down from 0.7% in January and 0.9% in December -- coming after GDP declined 0.3% in 2023. For next year, ifo raised its growth estimate by 0.2 percentage point to 1.5%.“Economic output will accelerate toward the middle of the year as interest rate and price burdens gradually disappear and consumers’ purchasing power increases,” says Timo Wollmershauser, ifo's head of forecasts.

Ifo pointed to better news on the inflation front, with prices set to rise 2.3% this year, compared to 5.9% in 2023. In 2025, inflation should be 1.6%, it said.

Bundesbank President Joachim Nagel will discuss the outlook for Germany's economy with MNI on March 22. (see MNI Webcast with JoachimNagel)

MNI London Bureau | +44 203-865-3812 |
MNI London Bureau | +44 203-865-3812 |

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