Germany's economic recovery is turning out weaker than expected in the spring. That is the conclusion reached by experts at the German Institute for Economic Research (DIW). They have halved their growth forecast for the current year to 0.5 percent.
'The energy price shock is clearly slowing the recovery,' says DIW chief economist Geraldine Dany-Knedlik. However, she stresses that the situation is not a repeat of 2022/23. That was the year Russia launched its full-scale invasion of Ukraine. 'The shock is smaller, energy supplies are still secure, and Germany is now less dependent on fossil fuel imports than it was after the start of the war in Ukraine,' Dany-Knedlik explains.
