In 2022, observers repeatedly warned of deindustrialization and analysts predicted a sharp decline in economic output. These forecasts are now clearly clearer. According to the latest forecasts from the Ifo Institute, the German economy will contract by only 0.1% over the coming year. “After that, things will pick up,” says Timo Wollmershäuser, head of economic research. The IWH even predicts an unchanged economy of 0.0% growth for 2023 and a recovery of 1.9% for 2024.
Economic hopes improve labor market forecasts: IWH sees unemployment rate in 2023 below 2021 value; 2024 even slightly lower. Anyone who, in view of the gloomy economic forecasts in mid-2022, was worried about their jobs and prosperity can take a deep breath: the Federal Republic seems to be weathering the twin crises of the corona pandemic and the war in Ukraine better than we didn’t think so for a long time.