Ifo Institute Doubles Germany's GDP Growth Forecast For 2024

Munich-based think-tank, Ifo Institute, revised its GDP growth projection for Germany on Thursday from 0.2% to 0.4% for 2024.

It said Germany's GDP will increase by 1.5% in 2025.

Germany's inflation was at 5.9% last year but it fell to 2.4% in May. Ifo said it is expected to fall significantly to 2.2% in 2024 and 1.7% in 2025.

According to the latest data from Destatis, the country's statistical office, Germany's annual consumer inflation rose for the first time in 2024 to 2.4% in May, its highest in three months.

"New hope is currently emerging, the German economy is slowly working its way out of the crisis," said Timo Wollmershauser, deputy director of the ifo Center for Macroeconomics and Surveys.

The unemployment rate in the country is expected to come in at 5.9% in 2024 and fall to 5.6% in 2025.

Private consumption is estimated to soar by 0.3% in 2024 and 1.8% in 2025 with a gradual easing of inflation and interest rates.

Germany's GDP rose 0.2% quarter-on-quarter in January - March, recovering from a 0.5% contraction in the previous period.

In 2023, Europe's largest economy contracted 0.2% and slipped into a recession. -