Leading German economic research institutes now predict a markedly weaker growth for the domestic economy than previously thought. According to the _Handelsblatt_ (Tuesday edition) citing insiders, the consensus (or “Gemeinschaftsdiagnose”) now estimates gross domestic product to rise by just 0.6 % in the current year.
The forecast was compiled by RWI Essen, DIW Berlin, Ifo Munich, IWH Halle and the Kiel Institute in the course of a work mandated by the federal Ministry of Economic Affairs. The draft will be presented on Wednesday. For 2027, the same institutes anticipate GDP growth of roughly 1 %.
Half a year ago the joint projection had called for 1.3 % growth this year and 1.4 % in 2028. The downgrade is largely attributed to fallout from the Iran war and the sharp climb in oil and gas prices. Stakeholders note that the figures may still shift before the final presentation.