German economists lower growth outlook, see worse if gas cut

BERLIN (AP) — A group of leading economic think tanks has slashed its forecast for growth in Germany this year. They predicted on Wednesday that Europe’s biggest economy will expand by 2.7% as Russia’s war in Ukraine weighs on prospects. The think tanks forecast an even worse performance if Russian gas supplies are cut off suddenly. The five institutes’ revised outlook compared with a forecast of 4.8% they made last fall. For 2023, the think tanks forecast moderately better growth of 3.1%. The baseline predictions for this year and next assume continuing gas deliveries and “no further economic escalation from the war in Ukraine,” they said.