German Economy Forecast to Contract by 0.2% in 2024

Economic experts cite weak international demand, high energy costs, and policy uncertainty as key factors behind the revised projection.

The Hans-Böckler-Stiftung's IMK institute has adjusted its 2024 forecast, predicting a 0.2% contraction in Germany's GDP, down from an earlier projection of zero growth.
Contributing factors include subdued global demand, persistently high energy prices, and tight monetary policy despite initial interest rate cuts by the European Central Bank.
The IMK also lowered its 2025 growth forecast to just 0.1%, significantly down from its previous estimate of 0.7%.
Other economic research bodies, including the Kiel Institute for the World Economy and the Leibniz Institute for Economic Research, have similarly revised their outlooks downward.
Experts urge policymakers to restore public and investor confidence by providing clear and decisive economic and industrial policy direction.