Europe’s largest economy will suffer from global slowdown, reports Der Spiegel
Germany will be among the countries hardest hit by the global economic slowdown next year, Der Spiegel magazine reported on Monday, citing data from the Organization for Economic Co-operation and Development (OECD).
Europe’s biggest economy could contract by 0.7% in 2023, according to the latest OECD forecasts, with the organization citing rising energy prices as the reason for the slowdown.
The OECD forecast is higher than the 0.3% projected by the Ifo Institute for Economic Research in Munich earlier this month and the 0.2% suggested by analysts polled by Reuters in August.
Germany’s central bank, the Bundesbank, warned in August that a recession in Germany was “increasingly likely” but did not provide any figures.
German firewood prices soar – data
“The fall in economic output during the winter months has become much more likely,” said the central bank, quoted by Reuters. According to the regulator, the inflation rate could reach 10% in the fall, around five times the European Central Bank’s 2% target.
In August, Germany’s inflation rate was 7.9% year-on-year, pushed up by soaring energy costs.
For more stories on economics and finance, visit RT’s business section
You can share this story on social media: