Berlin, September 6 (FinanceFlashNews) – The German Institute for Economic Research (DIW) revised its forecast for the German economy, predicting zero growth in the country’s GDP for 2024. Initially, DIW expected a modest growth of 0.4%, but due to the lack of industrial recovery and weak private consumption, these projections have been lowered.
DIW notes that consumer spending remains sluggish, as many Germans prefer to save rather than spend. However, the institute forecasts an economic rebound in 2025, with growth of 0.9%, and 1.4% in 2026, driven primarily by private consumption fueled by rising real wages, especially in the public sector and industries like metalworking and electrical engineering.
Positive signs are also seen in foreign trade and investment, thanks to the lower interest rates initiated by the European Central Bank (ECB) in June.
German Economic Growth Forecast:
| Year | Expected GDP Growth (%) |
|---|---|
| 2024 | 0.0 |
| 2025 | 0.9 |
| 2026 | 1.4 |
Keywords: DIW, German economy, zero growth, private consumption, foreign trade, European Central Bank, GDP
