Germany: Ifo predicts less growth and more inflation in 2022


Germany: LIfo predicts less growth and more inflation in 2022 |  Photo credit: Shutterstock

Germany: LIfo predicts less growth and more inflation in 2022 | Photo credit: Shutterstock

PARIS, June 15 (Reuters) – Germany’s economy is expected to grow weaker than expected this year due to the economic fallout from war in Ukraine, the Ifo economics institute said on Wednesday.

He now expects gross domestic product (GDP) growth of 2.5% over the whole year against a forecast in March of 3.1%. The institute also expects an inflation rate of 6.8% rather than 5.1%.

“At the beginning of the year, high prices led to a loss of purchasing power for households and, in turn, a drop in the consumption of goods,” said Ifo economist Timo Wollmershäuser.

Rising commodity prices and supply bottlenecks should gradually ease in the second half of the year, he added. The Ifo forecasts a growth rate of 3.7% in 2023. (Reportage Rene Wagner, written by Miranda Murray, French version Laetitia Volga, edited by Kate Entringer)





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