2023-10-11 13:36:58
BERLIN, Oct 11 (Archyde.com) – The German government expects its economy to contract by 0.4 percent this year due to persistent inflation, high energy prices and weak international trade, the government said. Federal Ministry of the Economy on Wednesday.
The government had expected growth of 0.4% for 2023 in its April forecasts, but the weakness of the industrial sector and the highest interest rates in ten years raise fears of a recession in the region’s largest economy. euro.
The German economy has already experienced a recession in the last quarter of 2022 and the first quarter of 2023. A technical recession is defined as two consecutive quarters of contraction.
According to the latest forecasts, the German economy is expected to recover in 2024 and 2025, with growth of 1.3% and 1.5%, respectively.
Inflation is expected to stand at 6.1% this year, before slowing to 2.6% next year and to 2.0% in 2025, once more according to forecasts.
Earlier this month, the International Monetary Fund reduced its forecast for the German economy, targeting a contraction of 0.5% this year, compared to a previously forecast decline of 0.3%. (Report by Maria Martinez, French version by Stéphanie Hamel, edited by Kate Entringer)
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