The German government’s group of independent economic advisers has cut its 2022 growth forecast for Europe’s largest economy in light of Russia’s invasion of Ukraine and concerns over supply and prices of energy
BERLIN — The German government’s group of independent economic advisers on Wednesday cut its 2022 growth forecast for Europe’s largest economy in light of Russia’s invasion of Ukraine and concerns over supply and prices Energy.
The group predicts that Germany’s gross domestic product will grow by just 1.8% this year, down from the 4.6% it forecast in November. He said the economy would not return to pre-pandemic levels until the third quarter.
Last year, the country’s GDP grew by 2.9%; in the last quarter of 2021, it contracted by 0.3% compared to the previous quarter.
“Heavy dependence on Russian energy supplies poses a considerable risk of lower economic output and even recession with significantly higher rates of inflation,” the panel said.
Economists said in a statement that “Germany should immediately do everything possible to take precautions against a suspension of Russian energy supplies and quickly end its dependence on Russian energy sources.” .
They added that “in the long term, the objective must be to ensure greater energy security, for example by developing renewable energies and diversifying energy imports”. These measures reflect the policy of the German government.
Shortly before economists released their forecasts, Germany triggered an early warning level for natural gas supplies over fears Russia would cut off deliveries unless it was paid in rubles.
The panel of advisors predicts growth of 3.6% in 2023.
This version has been corrected to show that Germany’s 2021 GDP has been revised to 2.9% from 2.8%; and GDP fell in the fourth quarter by 0.3%, not 0.7%.