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- IFO: German economy seen stagnating this year
IFO: German economy seen stagnating this year
Timo Wollmershaeuser, head of economic research at Gemany’s highly influential IFO institute, said on Thursday that the German economy is seen stagnating this year, compared to a 0.4% growth previously projected.
Additional takeaways
"The German economy is stuck and is bobbing around in the doldrums, while other countries are feeling the upswing.”
“It expects the economy to grow by 0.9% next year, lower than the 1.5% previously forecast.”
“In 2026, Gross Domestic Product is likely to increase by 1.5%, according to the economic institute.”
German inflation is seen falling to 2.2% this year, from 5.9% last year.
"The order situation is poor and the gains in purchasing power are not leading to increased consumption, but to higher savings because people are insecure.”
“Unemployment is likely to go up due to the economic weakness, rising to 6.0% in 2024 from 5.7% in 2023. It will then fall to 5.8% next year and reach 5.3% in 2026.”
Market reaction
The EUR/USD pair shrugs off these comments, adding 0.16% on the day to test 1.1100, at the press time.
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