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MNI BRIEF: German Infl In Line With EA, Growth Lags - GCEE

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Weak household demand means economic recovery will be slow, German Council of Economic Experts says in Spring Report

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Inflation in Germany will fall to the euro area average of 2.4% in 2024 and 2.1% in 2025, the German Council of Economic Experts said in its Spring Report on Wednesday, but “sluggish” household demand despite rising real incomes will mean growth of only 0.2% in 2024.

The German labour market is expected to remain tight, with annual wage growth seen at 5.1% in 2024 and 3.7% in 2025 - compared with 6.3% in 2023. (See MNI INTERVIEW: German Pay Rises To Add To Inflation- Wise Man)

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Inflation in Germany will fall to the euro area average of 2.4% in 2024 and 2.1% in 2025, the German Council of Economic Experts said in its Spring Report on Wednesday, but “sluggish” household demand despite rising real incomes will mean growth of only 0.2% in 2024.

The German labour market is expected to remain tight, with annual wage growth seen at 5.1% in 2024 and 3.7% in 2025 - compared with 6.3% in 2023. (See MNI INTERVIEW: German Pay Rises To Add To Inflation- Wise Man)

Keep reading...Show less