Germany’s economy is set to grow much slower than initially forecast as a result of high interest rates and weak demand for the country’s exports.
Europe’s largest economy is poised for GDP growth of just 0.1 per cent this year, meaning the country’s recovery from a contraction of 0.3 per cent in 2023 — the worst in the G7 — will barely get off the ground, according to the Kiel Institute for the World Economy.
“Although a recovery is likely to set in from the spring, the overall momentum will not be too strong,” Stefan Kooths, head of economic research at the institute and a contributor to the new projections, said.
The forecasts, generated by five think tanks, underline the effect that tighter monetary policy
