FRANKFURT, Sept. 24 (Xinhua) -- The German economy remains mired in stagnation, with continued weakness expected throughout this year, according to a report published by a leading German research institute on Tuesday.
The German economy has been stuck in stagnation for years and a tentative recovery is anticipated only next year, the Macroeconomic Policy Institute (IMK) said in the report.
The institute forecasts that Germany's gross domestic product will grow by 0.4 percent this year, with recovery expected to accelerate next year, reaching a growth rate of 1.1 percent.
The report highlights that private consumption, driven by real wage increases and renewed consumer confidence, will play a crucial role in supporting the economic recovery. Meanwhile, exports and investment in equipment are expected to contribute positively to the rebound.
Regarding inflation, the IMK report aligns with the European Central Bank's projections, forecasting a 2.3-percent rise in consumer prices this year, followed by a 2-percent increase next year.
Earlier this month, a report from Germany's central bank also confirmed the persisting weakness in the economy. ■