The IfW economic institute foresees a recession and record inflation in Germany for next year.

  • Sees the German economy contraction by 0.7% in 2023 (previously predicted growth of 3.3% back in June)
  • Sees inflation this year at 8.0% (up from 7.4% previously)
  • Sees inflation next year at 8.7% (up from 4.2% previously)

On the forecast revisions, the firm says that “the recent price jumps for electricity and gas will noticeably reduce the purchasing power of private households and lead to a decline in private consumer spending”.

Go to top