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New HWWI Business Cycle Forecast
The Hamburg Institute of International Economics (HWWI) expects a further slowdown in the rise in consumer prices over the remainder of 2023 and in 2024. As a result, the cycle of interest rate hikes could come to an end and, in view of significant wage increases, real purchasing power and private consumption could start to strengthen. Against this backdrop, the German economy is expected to stabilize and gradually recover. For 2023, the HWWI continues to expect negative economic growth of -½% due to the depressed level in the first half of the year. In 2024, the economy is likely to grow slightly again at 1%.

New HWWI Business Cycle Forecast
The Hamburg Institute of International Economics (HWWI) expects the German economy to recover gradually at best over the remainder of 2023. The slowdown will be triggered by a restrictive monetary policy. The HWWI expects negative economic growth of -½% in 2023. In 2024, the economy could grow again noticeably by 1 ¼ percent. The prerequisites for this are no further tightening of monetary policy or geopolitical uncertainties.
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