- A recession is now expected for Germany in 2023
- But the downturn is not seen as severe
- Sees 2023 GDP growth at -0.5% (previously +2.4%)
- Sees 2024 GDP growth at 1.7% (previously 1.8%)
- Sees 2023 inflation at 7.2% (previously 4.5%)
- Sees 2024 inflation at 4.1% (previously 2.6%)
Once again, it's not so much about the numbers when it comes to these sort of forecasts but more so about the revision and the underlying sentiment attached to it. In this case, the stagflation outlook is pretty much a negative development to how things have progressed in the last six months - since their previous forecasts were made in June.
