German Economy Faces Recession Forecast by Bundesbank for Q1 2024

Thursday, 21 March 2024, 11:19

The German economy is anticipated to face a recession in the first quarter of 2024 according to the Bundesbank. The industry sector is expected to continue in a weakened state with no significant boost from private consumption. Uncertainty surrounding key issues like climate policy is impacting investment decisions, while inflation may decrease further in the upcoming months despite some fluctuation.
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German Economy Faces Recession Forecast by Bundesbank for Q1 2024

German Economy Forecasted Recession in Q1 2024

The Bundesbank forecasts a potential recession for the German economy in the first quarter of 2024. Industry, especially, is expected to remain in a weak phase as there is no immediate stimulus from private consumption to support growth.

Impact of Climate Policy on Investment

  • Uncertainty over important matters such as climate policy is influencing businesses' investment decisions, further impacting economic growth.

Inflation Trends and Challenges

  1. Inflation is projected to decrease in the coming months, despite the likelihood of fluctuations due to the slow decline in services inflation.

The latest PMI data reinforces the concerns raised in this report by indicating a persisting negative sentiment in the economy.


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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