That is the second time this yr that Ifo has moved to chop the German progress forecast for 2024. The primary was the revision decrease in January to 0.7%, down from 0.9% in December. After which now, they’re transferring to chop that forecast to simply 0.2%. On the change, Ifo says that:

“Consumer restraints, high interest rates and price increases, the government’s austerity measures and the weak global economy are currently dampening the economy in Germany and leading to another winter recession.”

The institute solely expects German financial output to speed up in the direction of the center of the yr, holding the same view to IfW earlier here. As for 2025, the agency raises its progress estimate to 1.5% from 1.3% beforehand.

On the inflation entrance, Ifo sees inflation falling to 2.3% this yr and 1.6% in 2025.