The joint economic forecasts for the autumn now shows that these institutes are expecting the German economy to shrink by 0.1% in 2024. Their previous forecast was for the German economy to grow by 0.3% this year. The projected drop now will follow from the 0.3% contraction in the economy seen last year.
“In addition to the economic downturn, the German economy is also being weighed down by structural change. Decarbonisation, digitalisation, and demographic change – alongside stronger competition with companies from China – have triggered structural adjustment processes that are dampening the long-term growth prospects of the economy.”