German Economic Institutes: 2022 GDP growth forecast lowered to 2.7% from 4.8%

In a recently published report, Germany's leading economic institutes announced that they lowered Gross Domestic Product (GDP) growth forecast for Germany in 2022 to 2.7% from 4.8% previously, as reported by Reuters.

Additional takeaways

"2023 GDP growth forecast revised higher to 3.1% vs 1.9% previously."

"German CPI seen at 6.1% in 2022, 2.8% in 2023."

"In case of a sudden stop of Russian energy supply, GDP growth seen at 1.9% in 2022."

In case of a sudden stop of Russian energy supply, GDP seen contracting by 2.2% in 2023."

"Cumulative loss of GDP in 2022 and 2023 in event of an energy freeze likely around 220 billion euros, or more than 6.5% of annual economic output."

Market reaction

Germany's DAX 30 is down 0.4% on the day after this publication, reflecting a risk-averse market environment.