German economic advisors to cut 2024 growth forecast

THE German Council of Economic Experts expects 0.2 per cent gross domestic product growth this year, according to a source who has seen a draft document that will be presented on Wednesday (May 15).

For 2025, the economic experts forecast 0.9 per cent growth, the source said on Tuesday.

In its autumn forecast published in November 2023, the panel of experts forecast growth of 0.7 per cent for 2024.

The German economy shrank by 0.2 per cent last year, the weakest performance among big euro zone economies, as high energy costs, lacklustre global orders and record high interest rates took their toll.

At the start of this year, Germany skirted a recession, growing by 0.2 per cent in the first quarter from the previous three-month period in adjusted terms. In the last quarter of 2023, the economy shrank by 0.5 per cent.

The economic experts are somewhat less optimistic for 2024 than the German government, which expects 0.3 per cent GDP growth this year. REUTERS