Research institution: Germany's economy will stagnate this year

Golden Ten Data on September 5, Germany think tank Ifo said on Thursday that it expects the German economy to stagnate this year and lowered its previous economic rise forecast of 0.4%. The updated forecast shows that Ifo expects the Germany economy to rise by 0 next year. 9%, down from the previous forecast of 1.5%; It could rise by 1.5% in 2026. Germany's inflation rate continues to fall this year and is expected to be 2.2%, down from 5.9% in the previous year. According to Ifo's forecast, inflation will continue to decline, falling to 2.0% in 2025 and 1.9% in 2026. Although inflation has eased, consumption will remain weak. Wollmershaeuser, head of economic research at Ifo, said: "The order situation is not good, and the increase in purchasing power does not lead to an increase in consumption, but an increase in savings because people are insecure. "The current savings rate is 11.3 percent, well above the pre-pandemic 10-year average of 10.1 percent. Ifo said the unemployment rate could rise from 5.7% in 2023 to 6.0% in 2024 due to a weak economy, falling to 5.8% next year and 5.3% in 2026.