Germany’s top financial institutions revised down their forecasts for 2024 and now see Europe’s biggest economy shrinking by 0.1 percent, people familiar with the data from the joint autumn economic forecast told Reuters on Tuesday.

As Reuters reports, Germany’s economy was the weakest among its major eurozone peers last year, contracting 0.3%.

Even with inflation on the decline, consumption remains weak and high energy costs, few global orders and high interest rates continue to weigh on.

The latest economic figures paint a bleak picture. German business sentiment fell for a fourth straight month in September and more than expected, a survey showed on Tuesday.

Data earlier this week showed German business activity shrank in September at the sharpest pace in seven months, putting the economy on track for a second straight quarter of output declines.

Financial institutes are also downwardly revising their forecasts for the coming years, according to the sources. The growth forecast for 2025 has been cut to 0.8 percent from 1.4 percent, and for 2026, the institutes forecast growth of 1.3 percent, the sources said.

The institutes’ joint economic forecast is due out on Thursday, meaning the figures could change slightly.

The Ministry of Economy incorporates the combined estimates from the institutes – Ifo, DIW, IWH, IfW and RWI – into its own forecasts.

According to the latest forecast, the German government expects the economy to grow by 0.3% this year. A new update is expected in October.