Germany's Ifo lowers 2022 growth forecast to 2.2%-3.1%

Germany's Ifo Institue announced on Wednesday that they revised the 2022 economic growth forecast lower to 2.2%-3.1% from 3.7% in December due to the Russa-Ukraine war, as reported by Reuters.

Assessing this revision, "the Russian attack is dampening the economy via significantly higher raw material prices, sanctions, increasing supply bottlenecks for raw materials and increased economic uncertainty," Ifo's chief economist Timo Wollmershaeuser.

Meanwhile, the German inflation forecast is revised higher to 5.1%-6.1% in 2022 from 3.3% in December.

Market reaction

Germany's DAX 30 Index showed no immediate reaction to this report and was last seen posting small daily gains at 14,520.