German Economic Institutes Cut 2023 GDP Forecast on Energy Price Surge

German Economic Institutes Cut 2023 GDP Forecast on Energy Price Surge
A German flag is reflected in the window of the Paul Loebe building in Berlin, Germany, on Nov. 19, 2020. Hannibal Hanschke/Reuters
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BERLIN—Three of Germany’s leading economic institutes lowered their forecast for Europe’s largest economy next year, predicting high energy prices caused by the Ukraine war would take their toll.

The IfW institute in Kiel and Halle’s IWH predicted on Thursday that the economy would contract in 2023, a U-turn from June forecasts that predicted growth of 3.3 percent and 2.0 percent, respectively.