German economy is suffering from its own sanctions
2023.01.13 04:51
German economy is suffering from its own sanctions
By Kristina Sobol
Budrigannews.com – The Federal Statistics Office reported on Friday that Germany’s economic output likely stagnated in the final quarter of last year and increased by 1.9% for the entire year 2022, indicating that Europe’s largest economy may just have avoided a recession this winter.
The full-year increase in GDP of 1.9%, as opposed to the 1.8% growth that was predicted by economists in a Reuters poll in 2022.
Germany may just avoid a recession, which is defined as two consecutive quarters of contraction, according to the initial fourth-quarter report.
The economy, which expanded in the third quarter, may be able to avert the worst of a downturn brought on by a drop in Russia’s energy supply following the invasion of Ukraine, according to growing indications.
A survey conducted last month revealed that, despite the energy crisis and high inflation, business morale increased more than anticipated in December as the outlook for the economy improved.
Monika Schnitzer, the government’s economic adviser, told Reuters earlier this week that as global energy prices have fallen, inflation in Germany has probably reached its peak. She also said that she expects prices to continue to fall this year.
Due to falling energy costs and the government’s one-time payment of household energy bills, German inflation eased in December for a second month in a row. EU-harmonized consumer prices increased by 9.6% for the year.
The Statistics Office added that Germany’s state deficit ratio reached 2.6% of GDP in 2022.
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