Experts forecast a mild attrition in German economy

Berlin, Jun 15 (Prensa Latina) The German Institute for Economic Research (DIW) on Thursday forecast that the moderation of consumption registered at the onset of 2023 will cause a mild attrition in the country's economic production for the next 12 months.

June 15, 2023
14:34

A group of experts from renowned German research institutes also confirmed such a prediction.

The DIW estimates that economic output will decline by 0.2 percent overall in 2023, and the recovery will not be able to compensate for the losses of the first few months.

The Institute for the World Economy (IFW) in the northern Kiel City expects a depletion of 0.3 percent this 2023, revising downward its previous forecast (+0.5 percent).

In turn, the Economic Research Institute (RWI its German acronym), headquartered in Essen in western Germany, also expects a reduction by 0.3 percent.

All three institutes assume that the economy will return to growth in 2024. The DIW expects a rise of 1.5 percent, the IFW 1.8 percent and the RWI two percent.

The IFW and RWI thus adjusted their subsequent forecasts upwards. According to the DIW, real incomes are likely to rise again from the second half of 2023 for the first time in three years. This would mean that more money would be available to people, even after eliciting price increases.

ef/omr/mgt/rfc