The feared fall in GDP to negative may not happen this year, according to experts
Despite the blows of the coronavirus, the war in Ukraine, the problems in the supply chain and especially high energy prices, Germany’s Gross Domestic Product grew by 1.9% in 2022, according to the Bundesamt für Statistik.
The first economy of the European Union achieved a higher GDP than what specialized institutes and economists calculated. In 2021, Germany’s growth will be 2.6%. The feared recession for 2023 will be less than 1%, according to expert estimates, and much milder than expected. Some institutes are even counting on a small growth for this year thanks to millions of dollars in support from the federal government for companies and individuals to cope with the high energy prices.
However, this will cause Germany’s deficit to widen again in 2023, after spending more money than it received in 2022. The Ministry of Finance recently stressed that the various crises last year forced it to take on a new debt of 115,400 million euros, 23,500 million less than initially calculated, thanks to the significant increase in tax revenues.
That debt does not include the extraordinary spending that the executive has taken on with the 200,000 million to curb energy prices in this country, of which 30,000 million has been spent so far.
Source: La Verdad
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
