Despite unexpected growth in the German economy in the third quarter, the federal government is sticking to its subdued economic expectations. The bottom line is that the autumn projection is confirmed, according to which economic output is likely to grow by 1.4 percent in the current year, according to the monthly report published by the Federal Ministry of Economics on Monday. “In the winter months of 2022/2023, the German economy is likely to slide into a recession.”
For the coming year 2023, an annual average decline in gross domestic product of 0.4 percent compared to the previous year is expected as a result. The Federal Ministry of Economics wrote that the persistently high energy prices, rising inflation and the associated loss of purchasing power are increasingly burdening the German economy.
According to preliminary data from the Federal Statistical Office, Europe’s largest economy grew by 0.3 percent in the period from July to September inclusive compared to the previous quarter. Despite high inflation, which has meanwhile exceeded 10 percent, private consumer spending made a major contribution. In view of the economic consequences of the Ukraine war, economists had expected a decline in economic output on average.
