German Economic Outlook Dims Due to Weak Growth and High Inflation

• Institute significantly lowers 2023 German economic growth forecast to 0.1% due to domestic and foreign "headwinds"

• 2024 forecast kept at 1.4% growth; 2023 saw 0.3% economic contraction

• Productivity stagnant; private consumption and exports weaker than expected

• Political uncertainty around government growth packages weighing on business investment

• Inflation easing - consumer prices expected to rise 2.3% in 2023 and 1.8% in 2024