According to the predictions of the German Government, the economy will grow by 1.4% in 2022, below what was forecast in the spring (2.2%).
The German economy will enter a recession in 2023, when its Gross Domestic Product (GDP) will fall by 0.4%, according to projections updated this Wednesday by the Minister of the Economy and Vice Chancellor, Robert Habeck.
The German government has revised its spring forecasts downwards. So, it estimated a growth of 2.2% in 2022 and 2.5% in 2023. This year a growth of 1.4% is expected.
The revision is largely due to the economic consequences of the war in Ukraine and, especially, the interruption of the supply of Russian gas. Both phenomena have caused sharp rises in energy prices, slowing down industrial production, according to government estimates.
High levels of inflation, at 8.0% this year and, according to the forecast, 7.0% in 2023, are also holding back consumption.
“These are difficult times and the projections for autumn confirm this. We are experiencing an energy crisis that is increasingly becoming an economic and social crisis,” Habeck acknowledged.
“The trigger for this crisis has been (Russian President Vladimir) Putin’s aggression against Ukraine. The answer can only be firmness. The European Union (EU) and international partners have responded with clear sanctions and that remains the answer. adequate and indispensable,” he added.
In this sense, Habeck added that one of Putin’s purposes is to destabilize social and economic life in Germany and in Europe and that everything necessary must be done to make it fail.
On the other hand, Habeck stressed that Germany is on the way to freeing itself from dependence on Russian energy imports, a situation that had been reached 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 Government has established a protection umbrella of 200,000 million euros that will work in principle until 2024.
Source: Eitb
I’m Tifany Hawkins, a professional journalist with years of experience in news reporting. I currently work for a prominent news website and write articles for 24NewsReporters as an author. My primary focus is on economy-related stories, though I am also experienced in several other areas of journalism.