Germany to see decline in economic performance in 2023, say experts

This year, Germany will continue to lag behind the rest of the euro zone, in which the economy is expected to develop somewhat better overall than previously expected.

The high inflation rate is also not expected to considerably retreat towards its target until 2024. These are the results of the business cycle tableaus by ZEW Mannheim and the German newspaper Börsen-Zeitung.

In the coming year, however, the German economy should be able to catch up again, it noted.

Average inflation for 2023 is expected to be around 6 per cent for Germany and 5.5 per cent for the euro area. In 2024, experts predict an inflation rate of 2.7 per cent for Germany and 2.8 per cent for the euro area.

Experts currently forecast a decline in Germany’s real gross domestic product (GDP) of 0.3 per cent for 2023 and an increase of 1.2 per cent for 2024, ZEW Mannheim said in a release.

ALCHEMPro News Desk (DS)