register now for free unlimited access to reuterscom register christmas shoppers wear masks and fill colognes main shopping street hohe strasse high street during the coronavirus disease covid19 pandemic in cologne germany december 12 2020 reuterswolfgang rattayfile photo berlin sept 12 reuters  germanys economy will contract next year as a dramatic rise in energy costs due to the war in ukraine extinguishes the chances of recovery after pandemicrelated lockdowns the ifo institute said on monday the institute reversed its june forecast of 37 growth for 2023 and now predicts that europes largest economy will contract by 03 at the same time it bumped up its forecast for 2023 inflation by 6 percentage points to 93 read more for 2022 ifo lowered its growth forecast to 16 from 25 and raised its inflation forecast to 81 from 68 these are unusually large changes in such a short period of time said timo wollmershaeuser head of ifos economic forecasts price increases should grow less dramatically over the course of the coming year  calculated under the assumption that there will be enough gas in winter  and energy prices will begin sinking in spring 2023 at the latest said the institute for 2024 the institute predicts economic growth of 18 and inflation at 25 the german economy grew slightly in the second quarter propped up by household and government spending read more reporting by rene wagner and miranda murray editing by rachel more