German economy expected to contract this year, says Kiel Institute

They had previously penciled in a 0.2% growth forecast for the German economy this year. Meanwhile, they also revised lower their projection for the economy next year. That is now see at a growth of 0.5%, down from 1.1% in their previous forecast.

Again, with all these forecasts, it’s more to do with the trends in the revision than the actual numbers. After a more resilient showing in 1H 2024, mostly thanks to the services sector, the outlook for the German economy is darkening again as the manufacturing sector remains in recession while things are slowing down elsewhere.

This article was written by Justin Low at www.forexlive.com.