News from 2024-08-27 / KfW Research

KfW Business Cycle Compass August 2024

The sawtooth shape of Germany’s business cycle is gradually levelling out

With noticeably increasing real wages and growing household purchasing power, conditions for a consumption-driven recovery remain intact. However, the recovery will set in later and be slightly weaker than expected in the spring. KfW Research has therefore downgraded its growth forecast for Germany by 0.2 percentage points for both years to 0.1% in 2024 and 1.0% in 2025. The German inflation rate (HICP) will likely come in at 2.6% in 2024 and 2.3% in 2025. Euro area GDP should grow by 0.8% this year and 1.3% next year.

KfW Business Cycle Compass August 2024

Press release

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