The wide range reflects the great uncertainty surrounding Germany at the moment, especially with the recent political issues. Ifo notes that if Germany fails to overcome structural challenges, the economy will grow by just 0.4% next year. But if the right economic policy is adopted, it can achieve growth of up to 1.1%.
“At this time, it is still not clear whether the current level of stagnation is a temporary weakness or one that is permanent and thus a painful change in the economy.”
The latest forecast is a significant change from their previous forecast in September for the economy to grow by 0.9%.
Source link
