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New predictions from the Munich Institute for Economic Research (Ifo) and the Kiel Institute for the World Economy suggest that German GDP is expected to grow by 0.8% this year. Before, both organizations had predicted a growth rate of 1%.
The Ifo report says that even with the recent price increases in the energy market, Germany's economic growth is expected to keep going until the end of the year. This is mainly because the government is increasing its spending on infrastructure, climate initiatives, and defense, which should help boost demand further.
Experts from the institute caution that if the Middle East conflict continues and high energy prices remain, the resulting economic impact will be even more damaging. They think that in this situation, inflation in Germany might rise to 3%, and the country's economic growth this year is expected to be just 0.6%.
source: dw.de
The Ifo report says that even with the recent price increases in the energy market, Germany's economic growth is expected to keep going until the end of the year. This is mainly because the government is increasing its spending on infrastructure, climate initiatives, and defense, which should help boost demand further.
Experts from the institute caution that if the Middle East conflict continues and high energy prices remain, the resulting economic impact will be even more damaging. They think that in this situation, inflation in Germany might rise to 3%, and the country's economic growth this year is expected to be just 0.6%.
source: dw.de