The German institute IFO announced on Wednesday that lowers economic growth forecast for 2022 to 2.2%-3.1% from 3.7% forecast in December due to Russa-Ukraine waras reported by Reuters.
Assessing this review, “the Russian attack is weighing on the economy through Significantly higher commodity prices, sanctions, increased commodity supply bottlenecks, and increased economic uncertainty” said IFO Chief Economist Timo Wollmershaeuser.
In the meantime, German inflation forecast revised upwards to 5.1%-6.1% in 2022 from the 3.3% forecast in December.
Germany’s DAX 30 index has shown no immediate reaction to this news, posting small daily gains at 14,520.
Source: Fx Street