Economic Outlook for Germany

FRANKFURT (Reuters) – Germany’s economy ministry plans to downgrade its 2024 economic growth forecast, expecting Europe’s largest economy to shrink by 0.2%, as reported by the Sueddeutsche Zeitung on Sunday.

The forecast for an inflation-adjusted contraction, set to be published on Wednesday, follows a previous government projection of 0.3% growth this year after a 0.3% contraction in 2023.

Last month, Germany’s leading economic institutes downgraded their 2024 forecast to a contraction of 0.1%.

The economy ministry did not immediately respond to a request for comment.

Led by Robert Habeck of the Green Party, the ministry also plans to issue a forecast for 2025 economic growth of 1.1%, up from the previously estimated 1%, along with a projection for 1.6% growth in 2026, banking on a package of government measures to stimulate growth, as reported by Sueddeutsche without citing sources.

Key Points

• Germany’s economy forecast downgraded to a 0.2% contraction for 2024.
• Previous projection for 2023 was 0.3% growth after a 0.3% contraction.
• 2025 growth forecast increased to 1.1% and 1.6% for 2026.