Grim economic forecast issued for Germany

Grim economic forecast issued for Germany

Eurozone’s largest economy won’t escape recession this year, researcher Ifo warns

Germany is facing a recession this year as the economy has continued to shrink amid the deepening cost-of-living crisis, the Ifo Institute for Economic Research reported on Wednesday.

In the first quarter, gross domestic product (GDP) is expected to fall by 0.2%, the report suggests. The economy contracted by 0.4% in the fourth quarter of 2022 compared to the previous three months. A recession is defined as two successive quarters of contraction.

The Ifo forecasts economic output in 2023 to remain at roughly the same level as the…