BERLIN—Germany’s recession will be milder than expected, with the economy expected to contract by 0.1 percent in 2023 compared to a previous forecast of shrinking by 0.3 percent, the Ifo economic institute said on Wednesday.
The economy is expected to grow by 1.8 percent in 2022 compared to a previous forecast of 1.6 percent. Inflation is seen at 7.8 percent this year, 6.4 percent next year, and 2.8 percent in 2024, Ifo said in a statement.
Economic growth is expected to bounce back to 1.6 percent 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.
