German Economic Forecast Revised Amid Tariff Concerns

German economic institutes have revised their 2023 growth forecast to 0.1%, down from 0.8% predicted earlier. The 2026 forecast anticipates growth just above 1.0%. The revisions account for U.S. tariffs on EU products, but not the recent 20% increase on other goods.

German economic institutes have lowered their growth forecast for 2023 to a mere 0.1% from the previously expected 0.8%, according to inside sources. The updated figures were shared with Reuters ahead of their official release scheduled for Thursday.

For the year 2026, the institutes predict economic growth just above 1.0%, the sources added, without specifying exact numbers. The prior forecast for 2024 has also been revised to 0.8%.

These adjustments include projections for U.S. tariffs at 25% on EU aluminium, steel, and automobiles, although they do not account for recent tariff hikes of 20% on other goods, announced last Wednesday.

(With inputs from agencies.)