Germany has suffered its first recession since the start of the pandemic after seeing its economy contract by 0.5% in the first quarter of 2023 following a weak winter.
The German Institute for Economic Research (DIW Berlin) forecasts that the national economy will shrink by 0.2% year-on-year in 2023 before expanding by 1.5% in 2024. The global economy is projected to grow by 3.5% in 2023 and by 4.1% in 2024.
The Kiel Institute for the World Economy (IFW) expects a year-on-year decline of 0.3% in 2023 after significantly downgrading its spring forecast of 0.5% growth. But it has also revised its 2024 national growth forecast upwards to 1.8% from 1.4% expected previously. It estimates global growth in 2023 to rise 3.5% and speed up to 4.1% in 2024.