Head of Ifo (Information and Forschung (research) – a Munich-basedeconomic research institution), Hans-Werner Sinn, writing in a guest column for Wirtschaftswoche magazine says German economic growth will shrink towards zero in Q2 (from 0.8% Q1) due to the Ukraine crisis and the new economic sanctions imposed on Russia:
- Says forecasts that Germany’s economy would expand by 0.3% in the second quarter have to be revised down
- “It looks like there will be a longer break in the economic upturn that began in the second half of last year and continued through the winter months”
- “The growth forecast that Ifo presented last month will likely have to be revised downward. The assumption that the second quarter will have had grown 0.3 percent from the first quarter can no longer be held onto. It’s more likely that there was zero growth in the second quarter”
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