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German govt to slightly raise 2023 GDP forecast – sources
Global Banking & Finance Review®
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By Holger Hansen
BERLIN (Reuters) -The German government is set to slightly raise its economic growth forecast for this year to 0.4% from its previously predicted 0.2%, two sources told Reuters on Thursday.
For 2024, the government will slightly lower its prediction, to 1.6% from the 1.8% foreseen in January, the sources said.
Inflation forecasts will also be tweaked down, with the rates for both 2023 and 2024 now seen 0.1 percentage point lower, at 5.9% and 2.7%, respectively.
An Economy Ministry spokesperson did not comment and said Economy Minister Robert Habeck would present the spring economic projections next Wednesday.
With the new projections, the government is slightly more optimistic than the five economic institutes that prepare the Joint Economic Forecasts, which foresee 2023 economic growth of 0.3%.
In the Joint Economic Forecasts, which are incorporated into the ministry’s forecasts, the institutes predict inflation of 6.0% in 2023, before slowing to 2.4% in 2024.
(Reporting by Holger Hansen, Writing by Miranda Murray, Editing by Rachel More)
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is typically measured by the Consumer Price Index (CPI).
Economic growth refers to an increase in the production of goods and services in an economy over a period, usually measured by the rise in GDP.
Financial markets are platforms where buyers and sellers engage in the trading of assets such as stocks, bonds, currencies, and derivatives, facilitating capital flow in the economy.
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