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MNI BRIEF: Sharp Cut To German Growth Outlook - Joint Forecast

(MNI) LONDON

Five of Germany’s leading economic research institutes cut their 2024 joint growth forecast from 1.3% to 0.1% on Wednesday, citing cyclical and structural weaknesses, with the outlook for 2025 revised downwards by 0.1% to 1.4%.

Private consumption is expected to become the main force driving the economy, with wages expected to rise by 4.6% and 3.4% in nominal terms in 2024 and 2025 respectively and labour markets remaining tight.

Exports will make a greater contribution to GDP over the course of the year, with overall inflation seen at 2.3% in 2024 and 1.8% in 2025, and core inflation at 2.8% and 2.3%, respectively.

Meanwhile, ongoing uncertainty around economic policy continues to weigh on corporate investment, the report’s author’s said, with investment levels this year only equal to those seen in 2017.

MNI London Bureau | +44 20 3983 7894 | luke.heighton@marketnews.com
MNI London Bureau | +44 20 3983 7894 | luke.heighton@marketnews.com

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