(MENAFN) According to a report from the IMK institute, Germany, the largest economy in the European Union, is anticipated to experience a contraction in its GDP by 0.5 percent in 2023. This economic decline is attributed to a range of factors, including an ongoing energy crisis and rising interest rates, which have presented significant challenges to the country's economic stability.
Furthermore, the IMK's outlook for Germany's economic performance in 2024 is notably more pessimistic than its previous projection in the spring. While they initially forecasted a GDP growth rate of 1.2 percent for next year, their revised estimate now stands at a considerably lower 0.7 percent. This downward revision underscores the uncertainties and challenges that Germany's economy currently faces.
It's worth noting that other prominent German economic institutes, such as the Ifo Institute, hold a more optimistic view of Germany's economic prospects for the coming year. They project a GDP growth rate of 1.4 percent for the same year, indicating a divergence of opinions among economic forecasters regarding the country's future economic performance.
“The German economy, weakened by energy price shocks, will not really get going in the coming months because high interest rates and a subdued global economy are putting the brakes on,” the IMK said.
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