German economic research institutes have revised their outlook for the year, predicting a markedly slower growth rate than earlier estimates. They now expect the gross domestic product to rise by only 0.6 % in the current year, according to the “Handelsblatt” (Tuesday edition) citing insider information.
The revised joint forecast, prepared by the RWI in Essen, the DIW in Berlin, the Ifo in Munich, the IWH in Halle, and the Kiel Institute on behalf of the Federal Ministry of Economics, will be presented on Wednesday. In 2027 the institutes foresee GDP growth of roughly 1 %.
Half a year ago, the same consortium had projected 1.3 % growth for the current year and 1.4 % for the next. The downward revision is largely attributed to the effects of the Iran conflict and the sharp rise in oil and gas prices. The figures are still subject to change before the official release.
