Economic Indicators
Inflation turns 3% growth for German retail into 2% contraction – association
2022.07.05 11:51
BERLIN (Reuters) – The German Retail Association left unchanged its forecast for the sector to grow 3% in nominal terms in 2022, but rising inflation meant that turnover would shrink by 2% in real terms, the body said on Tuesday.
The industry group blamed rising inflation and energy costs and poor consumer sentiment for the outlook. It said brick-and-mortar turnover would grow 1.4% in nominal terms and online retail 12.4%. Total turnover would hit 607.1 billion euros.
“The Russian war in Ukraine and COVID-19 lockdowns in Asia are interfering with supply chains, inflation is rising and energy costs are hitting unimagined highs,” said HDE head Stefan Genth. “Rising inflation is massively affecting shoppers.”
