in

German government expects economy to shrink by 0.2% this year, Sueddeutsche reports

The forecast for an inflation-adjusted contraction, which the ministry is due to publish on Wednesday, follows a previous government projection of 0.3% growth this year after a 0.3% contraction in 2023.

Last month Germany’s leading economic institutes downgraded their forecast for 2024 to a contraction of 0.1%.

The economy ministry did not immediately respond to a request for comment.

The ministry, led by Robert Habeck of the Green party, also plans to issue a forecast for 2025 economic growth of 1.1%, up from 1% forecast previously, and for 1.6% growth in 2026, banking on a package of government measures to stimulate growth, Sueddeutsche reported without citing sources.

How to limit exposure to individual risks, such as the Middle East conflict?

How fast is US inflation falling?