German economic institutes slash forecasts, see 2023 recession – Handelsblatt

BERLIN (Reuters) – Germany’s four leading economic institutes have slashed their forecasts for this year and next and now expect Europe’s largest economy to slip into recession in 2023, the Handelsblatt daily reported on Monday.

Gross domestic product (GDP) is expected to grow by 1.4% in 2022, down from a previous 2.7%, before contracting by 0.4% in 2023, the report said citing a joint forecast from the RWI, ifo, IfW and IWH.

The institutes had last forecast 3.1% growth for 2023.

(Reporting by Rachel More; Editing by Paul Carrel)