The institutes (4 German, 1 Austrian) had previously expected a growth of 0.3% in the German economy during the spring. So, this is a significant revision lower as they expect higher interest rates and high inflation to weigh on consumption activity.
2023 GDP growth is now forecast to be -0.6%, then +1.4% in 2024 and +1.5% in 2025. As for inflation, they see it at 6.1% in 2023, 2.6% in 2024, and 1.9% in 2025.
