In its Autumn Economic Forecast, ifo stated that German economy remains in “stuck in crisis”, impacted by both economic and structural challenges. Following last year’s -0.3% contraction, the country’s price-adjusted GDP is expected to “only stagnate” in 2024.
A “gradual recovery” is anticipated over the next two years, with growth projected at 0.9% in 2025 and 1.5% in 2026. However, these figures mark a significant downgrade from the ifo Economic Forecast Summer 2024, with growth estimates cut by -0.4% for this year and by -0.6% for 2025.
Despite initial hopes for improvement, both industrial activity and consumer spending are emerging “very slowly from their stagnation,” according to the report.
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