News from 2024-05-24 / KfW Research

KfW Business Cycle Compass May 2024

German GDP increased slightly again in the first quarter of 2024 and the economic indicators available to date also point to growth in the second quarter. Developments have largely confirmed the assumptions made in the winter forecast, which is why KfW Research continues to expect price-adjusted growth of 0.3 % for Germany in 2024, followed by 1.2 % in 2025. After a surprisingly good start to the year, we now expect GDP in the eurozone to grow by 0.8 % in 2024 and 1.5 % in 2025. Inflation is likely to be somewhat bumpier in the coming months, but ultimately inflation should continue to fall in both Germany and the Eurozone and be very close to the target value of 2 % next year.

KfW Business Cycle Compass May 2024

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