The German government assumes an economic recession this year. The economy will contract by 0.4 percent. This is what government sources told the German News Agency (DPA).
The official fall forecast is expected to be announced on Wednesday. In the spring, the government still expects the German economy to grow by 0.4 percent. But expensive energy, persistently high inflation and faltering foreign demand for German products mean the country may have entered a recession.
The government expects the economy to grow by 1.3 percent next year and by 1.5 percent in 2025. Inflation is expected to fall to 2.6 percent next year, after averaging 6 percent this year.
The government is not alone in its expectations. Banks and economic research institutes have been assuming for some time that Europe’s largest economy will contract this year.
Free unlimited access to Showbytes? Which can!
Log in or create an account and never miss a thing from the stars.
“Total coffee specialist. Hardcore reader. Incurable music scholar. Web guru. Freelance troublemaker. Problem solver. Travel trailblazer.”