Kiel Institute lowers GDP projection for Germany's economy to 0.1% in 2024

By Gokhan Ergocun

ISTANBUL (AA) – The German economy is expected to grow by 0.1% in 2024, revised by 0.8% from its previous projection, the Kiel Institute announced on Wednesday.

The country's gross domestic product (GDP) declined by 0.3% in 2023, the institute recalled, adding: "Germany's path out of the economic slump takes more time, with a moderate recovery setting in later this year."

The institute stressed that private consumption and exports are recovering later and less dynamically, while corporate investment spending is also weak.

It projected a 1.2% GDP growth rate in 2025.

The institute also forecasted that annual inflation, which was at 5.9%, will be at 2.3% in 2024 and 1.7% in 2025.