German economy to contract by 0.4% in 2023 – DIW

<p>The institute previously saw the German economy contracting by 0.2% but have revised the projection lower to 0.4% now, owing to a surprisingly weak second quarter. DIW notes that:</p><p>"Households' spending mood should benefit from significantly lower inflation, but the export-oriented German economy is slow to pick up speed despite an improving global economy."</p><p>Adding that sluggish consumption and weak exports due to faltering demand from China are key factors that are weighing on the outlook for the German economy.</p>

This article was written by Justin Low at www.forexlive.com.