IMF expects Germany to be the only advanced economy to shrink this year

IMF published the October issue of the World Economic Outlook Report with the title "Navigating Global Differences".
Reminding that the world economy grew by 3.5 percent last year, the report noted that global economic growth is expected to slow down to 3 percent this year and 2.9 percent next year.
In its forecasts published in July, the IMF predicted that the global economy would grow by 3 per cent in both 2023 and 2024. In the report, Germany is expected to shrink by 0.5 per cent this year, while it is estimated to grow by 0.9 per cent next year.
In its forecasts in July, the IMF predicted that the German economy would shrink by 0.3 per cent this year and grow by 1.3 per cent in 2024. In the IMF report, it was stated that Germany is expected to be the only developed economy to shrink this year, which opened the door to the debate on whether Germany will become the "sick man of Europe" again.
The German economy shrank by 0.4 per cent in the last quarter of last year and 0.1 per cent in the first quarter of this year, and failed to grow in the second quarter of the year.
The fact that many countries, notably China, are increasingly producing goods imported from Germany, high energy prices, high inflation and rising interest rates are making it even more difficult for the German economy to grow.