In its latest monthly report, Bundesbank projected a somewhat gloomy economic outlook for Germany. The central bank expects the country’s GDP to shrink by a calendar-adjusted -0.3% for 2023, with subsequent growth projected at 1.2% in 2024 and 1.3% in 2025.
Characterizing the economic recovery as a laborious process, the Bundesbank pointed to the lingering impacts of the crises Germany has endured over the past three years. The nation’s recession, however, is anticipated to conclude in the spring quarter, with a slight increase in GDP predicted for April to June period.
Bundesbank anticipates that private consumption, a crucial component of economic health, will hit its lowest point and then begin to rebound. It highlighted that “Thanks to strongly rising wages, the real disposable incomes of private households are stabilizing despite inflation remaining very high.”
