Germany: Recession of the economy in 2023, the government predicts

Recession amounting to 0.4% is expected by government for the German economy in 2023with inflation remaining close to 7%, Economy Minister Robert Habeck announced a while ago as part of the “autumn forecast”.

Back to development is expected in 2024with a rate of 2.3% and inflation of around 2.4%.

“It is a difficult time. We are experiencing a serious energy crisis, which is constantly expanding into an economic and social crisis”, said Mr. Hambek and attributed the unfavorable situation to the interruption of energy supply from Russia, which in turn has caused a serious limitation of the operation of particularly energy-intensive industries. For this year, however, it is estimated that GDP will increase by 1.4%, while last spring the government’s forecast still spoke of growth of 2.2% in 2022 and 2.5% in 2023.

According to the ruling coalition, the price increase will keep inflation at high levels, around 8% for this year and 7% for 2023. From 2024 it is expected to return to 2.4%.

“Energy must be affordable for everyone,” Mr Hambek stressed, referring to the 200 billion euro package of relief measures announced by the government. However, he again asked for the greatest possible savings from consumers, as, he said, natural gas is now a “rare commodity”. In the meantime, the occupancy of German warehouses has reached 95%, he said.

In terms of citizens’ purchasing power, this year consumer spending will still grow by 4.3%, but in 2023 it will decrease by 0.9%. Exports, on the other hand, will fluctuate at a relatively low level, with an increase of 1.4% for this year and 2.0% for the next.

RES-EMP

Read the News today and get the latest news.
Follow Skai.gr on Google News and be the first to know all the news.