Joint Economic Forecast Spring 2023

Stubborn core inflation – Time for supply side policies

The leading economic research institutes have raised their forecast for growth in German economic output in the current year to 0.3 percent.

In the fall, they were still expecting a decline of 0.4 percent. “The economic setback in the winter half-year 2022/2023 is likely to have been less severe than feared in the fall. The main reason for this is a smaller loss of purchasing power as a result of a significant drop in energy prices,” says Timo Wollmershäuser, Head of Forecasts at ifo. Nevertheless, the rate of inflation will fall only slowly from 6.9 percent last year to 6.0 percent this year.

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About the Joint Economic Forecast

The Joint Economic Forecast is published twice a year on behalf of the German Federal Ministry for Economic Affairs and Climate Action. The Institute for Advanced Studies (IHS) takes part in the publication as the partner institute of RWI Leibnitz-Institute for Economic Research.