According to the German government’s forecasts, the economy will grow by 1.4% in 2022, less than forecast in the spring (2.2%).
The German economy will slide into recession in 2023, when gross domestic product (GDP) will fall by 0.4%, according to forecasts updated Wednesday by Economy Minister and Vice-Chancellor Robert Habeck.
The German government has revised its spring forecast downwards. So it estimated growth of 2.2% in 2022 and 2.5% in 2023. This year, growth is expected to be 1.4%.
The revision is largely due to the economic consequences of the war in Ukraine and, in particular, the interruption of the supply of Russian gas. Both phenomena have, according to government estimates, led to sharp increases in energy prices, slowing industrial production.
High inflation, 8.0% this year and 7.0% in 2023, is forecast to hold back consumption.
“These are difficult times and the forecasts for the autumn confirm this. We are experiencing an energy crisis that is increasingly becoming an economic and social crisis,” acknowledged Habeck.
“The trigger for this crisis is the aggression of (Russian President Vladimir) Putin against Ukraine. The answer can only be determination. The European Union (EU) and international partners have responded with clear sanctions and that remains the answer. adequate and indispensable .” he added.
In that sense, Habeck added that one of Putin’s goals is to destabilize social and economic life in Germany and in Europe and that everything necessary must be done for it to fail.
On the other hand, Habeck stressed that Germany is on its way to freeing itself from dependence on Russian energy imports, a situation that had been achieved in recent years, but that in the meantime “all the financial strength of the state to preserve the substance of our economy and our jobs.
The cabinet has instituted a protection umbrella worth 200,000 million euros that will in principle work until 2024.
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Source: EITB
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
