Germany lowers its economic growth expectations for the current and next years
Berlin, April 2, 2017 – A German report lowered expectations for economic growth in the country during the current and next years, in light of the repercussions of the energy price shock linked to developments in the Middle East.
The report issued by the Group of German Economic Institutes said that the gross domestic product is expected to grow by 0.6% in 2026 and 0.9% in 2027, after growth of 0.2% in 2025, a reduction of 0.6 percentage points for 2026 expectations and 0.4 percentage points for 2027 expectations.
The report indicated that the rise in energy prices has eroded the purchasing power of families and increased production costs for companies, which limits the pace of economic recovery.
The institutes expected the inflation rate to reach 2.8% in 2026 and 2.9% in 2027, driven mainly by rising energy prices, with a gradual transfer of these pressures to core inflation during the coming period.
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