Germany’s economy ministry forecasts a recession

German newspaper Sueddeutsche Zeitung reported over the weekend on a dour forecast from German’s economy ministry, planning a downgrade to its 2024 economic growth forecast.

The new forecast will be for negative 0.2% growth, i.e. a shrinking economy, for 2024

• prior forecast was for +0.3%
• 2023 recorded a 0.3% contraction

For 2025, the forecast will be:

• +1.1% (prior forecast +1%)
• for 2026, +1.6%

The higher forecasts for 2025 and 2026 are based on implementation of government measures to stimulate growth.

This article was written by Eamonn Sheridan at www.forexlive.com.