EXCLUSIVE-German government slightly raises 2024 GDP forecast to 0.3%, source says

In 2025, the government expects gross domestic product to grow by 1.0%, according to the source. Inflation is expected to fall faster than previously expected, going down to 2.4% this year. The government had forecast 2024 inflation at 2.8% in previous projections.

The German government will raise its growth forecast for the German economy this year to 0.3%, from a previous forecast of 0.2%, a source told Reuters on Friday. In 2025, the government expects gross domestic product to grow by 1.0%, according to the source.

Inflation is expected to fall faster than previously expected, going down to 2.4% this year. The government had forecast 2024 inflation at 2.8% in previous projections. These forecasts are part of the draft spring projections of the government, which Economy Minister Robert Habeck is due to present next Wednesday.

The economy ministry could not immediately be reached for comment.