IMF Forecasts Deeper Recession in Germany Due to High Inflation, Manufacturing Slump

Germany headed for deeper recession than previously predicted, with economy now expected to shrink 0.5% in 2023.

IMF lowered growth forecasts for Germany and Italy, but raised outlook for France.

High inflation, slump in manufacturing, loss of Russian energy supplies hurting German economy.

Germany facing long-term issues like aging population and skills shortage.

IMF expects Germany to recover in 2024 and grow 0.9%, but outlook less positive than before.