German Economic Research Institute Lowers This Year's Economic Growth Forecast to 2.4%

[Photo by Reuters Yonhap News]

[Asia Economy Reporter Park Byung-hee] Six German economic research institutes have significantly lowered their forecast for Germany's economic growth rate this year from 3.7% in April to 2.4%, Bloomberg reported on the 14th (local time). The six institutes, including DIW and Ifo, jointly released their economic growth outlook on the same day and made this prediction.

The six economic research institutes stated that supply chain disruptions are expected to delay the recovery period of the German economy until next year. Therefore, instead of maintaining this year's economic growth forecast, they revised next year's growth forecast upward from 3.9% to 4.8%.

The six institutes explained that they lowered the growth forecast reflecting shortages of input raw materials, lack of shipping capacity, and recent increases in energy costs. Additionally, they postponed the recovery of production capacity across all industrial sectors from the end of this year to next spring.

The six economic research institutes release joint economic growth forecasts twice a year, in April and October.

The German government also expects sluggish economic growth in the fourth quarter of this year. The German Ministry of Economy stated in its monthly report, "Industrial production in August fell sharply," and "It is expected to remain weak for the next several months."

This content was produced with the assistance of AI translation services.