A robot adjusts a windshield in a fully automated process on a model of the A-Class production line of German car maker Mercedes Benz at the Daimler plant in Rastatt, February 4, 2019. REUTERS/Kai Pfaffenbach/File Photo/File Photo
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BERLIN, Jun 15 (Reuters) – Germany’s economy is likely to grow more slowly than previously expected this year due to the economic fallout from the war in Ukraine, the Ifo Institute said on Wednesday.
The institute lowered its forecast for German growth for 2022 to 2.5% from 3.1% in March, while revising its inflation forecast to 6.8% from a previous 5.1%.
“At the beginning of the year, high prices led to a loss of purchasing power in private households and thus to a decline in goods consumption,” said Ifo economist Timo Wollmershäuser.
Commodity prices and supply bottlenecks are likely to ease gradually in the second half of the year, Wollmershäuser said, and Ifo forecasts growth of 3.7% for Germany in 2023.
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Reporting by Rene Wagner, writing by Miranda Murray, editing by Paul Carrel
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