Germany's Ifo Institute Cuts 2024 GDP Forecast Amid Economic Challenges

Wednesday, 6 March 2024, 09:36

Germany's Ifo institute has revised its 2024 GDP forecast for the second time this year, lowering it to just 0.2%. The institute cites consumer restraints, high interest rates, price increases, government austerity measures, and a weak global economy as factors dampening Germany's economic outlook. While a rebound is expected in mid-2024, challenges persist, with inflation projected to fall over the next two years.
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Germany's Ifo Institute Cuts 2024 GDP Forecast Amid Economic Challenges

Germany's Ifo Institute Reduces 2024 GDP Forecast

This is the second time this year that Ifo has cut the German growth forecast for 2024, now to 0.2% from the previous 0.7% in January. The institute attributes this to consumer restraints, high interest rates, price increases, government austerity measures, and the weak global economy.

Highlights:

  • Ifo expects German economic output to rebound around mid-2024
  • 2025 growth estimate raised to 1.5% from 1.3%
  • Inflation forecasted to decline to 2.3% in 2024 and 1.6% in 2025

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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