EXCLUSIVE-German economic institutes forecast 0.6% GDP contraction this year - sources

Five economic institutes are predicting gross domestic product in Germany to contract by 0.6% in 2023, two sources told Reuters on Tuesday. The economics ministry usually updates its forecasts incorporating the results of the Joint Economic Forecasts. The Joint Economic Forecasts are prepared by the Ifo Institute, the Halle Institute for Economic Research, the Kiel Institute for the World Economy, the RWI – Leibniz Institute for Economic Research and the Austrian Institute of Economic Research.

Five economic institutes are predicting gross domestic product in Germany to contract by 0.6% in 2023, two sources told Reuters on Tuesday. For 2024, the institutes - four German and one Austrian - forecast GDP growth of 1.3% GDP growth, according to the sources.

Inflation is expected to be at 6.1% this year and fall to 2.6% next year, the sources said. The so-called Joint Economic Forecasts are to be presented in Berlin on Thursday. The economics ministry usually updates its forecasts incorporating the results of the Joint Economic Forecasts.

The Joint Economic Forecasts are prepared by the Ifo Institute, the Halle Institute for Economic Research, the Kiel Institute for the World Economy, the RWI – Leibniz Institute for Economic Research and the Austrian Institute of Economic Research.