MOSCOW (Pakistan Point News / Sputnik - 15th June, 2023) Germany's industrial output will continue shrinking this year before the national economy rebounds modestly in 2024, two economic research institutes predicted on Thursday.
Germany has suffered its first recession since the start of the pandemic after seeing its economy contract by 0.5% in the first quarter of 2023 following a weak winter.
The German Institute for Economic Research (DIW Berlin) forecasts that the national economy will shrink by 0.2% year-on-year in 2023 before expanding by 1.5% in 2024. The global economy is projected to grow by 3.5% in 2023 and by 4.1% in 2024.
The Kiel Institute for the World Economy (IFW) expects a year-on-year decline of 0.3% in 2023 after significantly downgrading its spring forecast of 0.5% growth. But it has also revised its 2024 national growth forecast upwards to 1.8% from 1.4% expected previously. It estimates global growth in 2023 to rise 3.5% and speed up to 4.1% in 2024.
