RWI Essen

RWI Essen is one of six leading German economic research institutes that jointly produce a semi-annual forecast of the German economy. These institutes are influential in shaping economic policy discussions and providing insights into the country's economic trajectory. RWI Essen, along with its peers, has recently revised its economic growth forecast for Germany downwards. This revision is primarily attributed to the economic fallout from the Iran war, which has led to increased energy prices and inflationary pressures. The institutes now project a GDP growth of only 0.6% for the current year, a significant reduction from previous estimates. Furthermore, they anticipate a rise in consumer prices, with inflation expected to reach 2.8% in 2026 and 2.9% in 2027. This downward revision and inflation forecast highlight the institute's current relevance in assessing the impact of geopolitical events on the German economy.