According to the source, Europe’s largest economy is expected to shrink by 0.4 percent next year, due to the energy crisis and supply chain bottlenecks.
The German government cut its growth forecast for this year to 1.4 percent, from the 2.2 percent forecast in April. It had previously forecast 2.5 percent growth next year.
A spokesman for the Ministry of Economy told Reuters that Economy Minister Robert Habeck will unveil the figures next week.
It is noteworthy that the four major economic institutes in Germany expected at the end of last month that the economy would enter a recession next year, expecting a contraction of 0.4 percent in 2023, which is consistent with the preliminary data revealed by the source to Reuters.
It is noteworthy that Germany has been suffering since the start of the Ukraine crisis last February from an aggravated energy crisis due to Russia cutting off its gas supplies to Europe as a result of the policy of sanctions and counter-sanctions between the West and Moscow against the backdrop of the Ukrainian war, or what Russia describes as a “special military operation”.
In a related context, a report by the Organization for Economic Cooperation and Development predicted that Germany will enter a recession next year, with Europe’s largest economy contracting by 0.7 percent – 2.4 percentage points lower than previous expectations.
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