Business sentiment has recently deteriorated again and overall, the indicators suggest that production fell noticeably in the third quarter of 2023, the economic institutes said.
GDP is expected to shrink by 0.4% in the third quarter, following stagnation in the second quarter.
For 2024, the institutes - four German and one Austrian - forecast GDP growth of 1.3%, down from 1.5% previously.
In the following years, a decreasing potential growth rate due to the shrinking labour force will become more and more apparent, the economic institutes said.
The Joint Economic Forecasts are prepared by the Ifo Institute, the Halley Institute for Economic Research, the Kiel Institute for the World Economy, the RWI – Leibniz Institute for Economic Research and the Austrian Institute of Economic Research.
Persons:
Kai Pfaffenbach, Oliver Holtemoeller, Maria Martinez, Friederike Heine Our
Organizations:
REUTERS, Rights, Reuters, Halle Institute for Economic Research, Ifo Institute, Halley Institute for Economic Research, Kiel Institute, Institute for Economic Research, Austrian Institute of Economic Research, Thomson
Locations:
Frankfurt, Germany