This comes in light of weak demand from abroad, limited government support for the green transition, and economic activity being affected by high interest rates.
Compared with the previous forecast issued in June, the bank's semi-annual forecasts for Europe's largest economy showed a slightly smaller contraction than expected in 2023, but it also greatly reduced the size of the expected recovery in 2024.
The latest forecasts indicate that the German economy will decline by 0.1 percent in 2023 and achieve growth of 0.4 percent next year.
During its meeting on Thursday, the European Central Bank kept interest rates unchanged, following the example of other major central banks, but it did not speak clearly about a future easing of monetary tightening while inflation recorded a sharp decline.
Thus, the key deposit rate, a benchmark for credit in the euro zone, was maintained at its historically high level of 4 percent reached in September.
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