German think tank raises country's 2024 economic growth forecast

By Tuba Ongun

ANKARA (AA) – A German think tank on Thursday raised its GDP growth forecast for Germany for this year, mainly led by a recovery in exports and consumption.

The eurozone's largest economy is projected to grow 0.2% this year, up from an earlier forecast of 0.1%, the IfW Kiel Institute for the World Economy said in a report.

However, there are no signs of strong economic momentum, IfW Kiel said, as it expects Germany's GDP to increase 1.1% in 2025, a downward revision of 0.1 percentage points from its previous forecast.

"There is light at the end of the recession tunnel. There are increasing signs that the German economy leaves the economic slump behind," said Moritz Schularick, the institute’s head.

The consumer inflation rate is foreseen to ease to 2.2% this year and 1.9% next year, it said.

According to the latest official figures from Destatis, Germany's annual consumer inflation rose for the first time this year to 2.4% in May, the highest level since February.