German experts have improved the forecast for the German economy

The recession in the German economy will come in the winter of 2022-2023, but it will be less destructive for Germany than previously expected, follows from the December forecast of the Munich Institute for Economic Research (Leibniz Institute for Economic Research at the University of Munich, IFO). According to IFO expectations, by the end of the year the dynamics of German GDP will enter the negative zone: the decline will continue for two quarters in a row. In October-December 2022, the economy will contract by 0.3% qoq, in January-March 2023 – by 0.4%. At the end of 2022, German GDP will grow by 1.8%. In 2023, a decline will be recorded – by about 0.1%. At the same time, inflation will slow down from 7.8% in 2022 to 6.4% in 2023, experts from the institute believe.

In a previous report dated September 12, the institute projected GDP growth of 1.6% in 2022 and -0.3% in 2023. Inflation was expected to reach 8.1% in 2022 and 9.3% in 2023 .