Leading experts predicted a decline in the German economy this year

Five of the best economic research institutes in Germany conducted a joint study and came to the conclusion that the German economy will show a decline of 0.6% at the end of the current year. Back in the spring, a similar study showed an increase of 0.3%.

The reason for the projected decline in GDP, according to the deputy head of the Leibniz Institute for Economic Research, Oliver Holtemoeller, is that “industry and private consumption are recovering more slowly than expected.”

The study notes that the German economy is also pressed by political uncertainty; against its background, production volumes are not recovering. However, experts believe that the economic downturn in Germany will end by the end of the summer: according to their forecast, next year GDP growth should be 1.3%.

This year, the inflation rate in Germany, as analysts expect will stop at 6.1%, but next year it should drop to 2.6%. Researchers also forecast an inflation rate of 1.9% for 2025.