Germany’s IFO cuts 2022 GDP growth forecast to 3.7% from 5.1%

Germany’s IFO institute sharply revised down the country’s GDP growth projections from 5.1% to 3.7% for 2022 amid dwindling economic recovery due to the fourth covid wave.

Key takeaways

Supply bottlenecks, fourth covid wave further delay economic recovery.

Lifts 2023 GDP growth forecast to 2.9% from 1.5%.

Expects GDP in Q4 2021 to shrink by 0.5% QoQ stagnate in Q1 2022.

Confirms 2021 GDP growth forecast of 2.5%.