Ifo had previously forecast the German economy to grow by 0.4% in 2024 but is now anticipating the economy to stagnate instead. They also now expect the economy to grow by 0.9% next year, as opposed to their previous forecast of 1.5%. Looking further out to 2026, they see the economy also growing at the same pace as in 2025.
Again, this just fits with the narrative of negative revisions to the German outlook. It’s not anything new given the struggles we have seen in Q3 data. But it just reaffirms that the Eurozone’s largest economy is facing a rough time, so that’s something the ECB has to be mindful about as well.