BERLIN (Reuters) – Germany’s recession will be milder than expected, with the economy expected to contract by 0.1% in 2023 compared to a previous forecast of shrinking by 0.3%, the Ifo economic institute said on Wednesday.
The economy is expected to grow by 1.8% in 2022 compared to a previous forecast of 1.6%. Inflation is seen at 7.8% this year, 6.4% next year and 2.8% in 2024, Ifo said in a statement.
Economic growth is expected to bounce back to 1.6% in 2024.
“In the two quarters of the winter half-year 2022/23, the gross domestic product shrinks, but then it goes up again,” said Ifo’s head of forecasts, Timo Wollmershaeuser.
(Reporting by Rene Wagner; writing by Matthias Williams; Editing by Paul Carrel)