Germany's gross domestic product (GDP) growth in 2024 is seen at 0.2%, the Ifo Institute for Economic Research said on Wednesday in its report. The forecast was revised down from January's projections, which stood at 0.7%.
However, economic growth estimates for 2025 were revised up by 0.2 percentage points to 1.5%. When it comes to unemployment, in 2024, the figure is expected to grow from 2.6 million to 2.7 million, and then fall back again to 2.6 million in 2025.
"Consumer restraint, high interest rates and price hikes, the government’s austerity measures, and the weak global economy are currently dampening the economy in Germany and leading to another winter recession. Economic output will accelerate toward the middle of the year as interest rate and price burdens gradually disappear and consumers’ purchasing power increases," Timo Wollmershauser, head of Forecasts at Ifo, commented.
