The German government expects the country’s economy to grow only slightly this year. This has made Berlin more optimistic than last autumn, when the government was counting on a contraction in Europe’s largest economy.
In a new estimate, to be presented on Wednesday, Germany’s gross domestic product will rise by 0.2 percent in 2023. This will stave off a recession, reports the insider-based Bloomberg news agency. In October, the German government was still assuming a contraction of 0.4 percent. For next year, the government has revised its growth forecast downwards, from 2.3% to 1.8%.
Black rock
German Economy Minister Robert Habeck will officially present the updated forecast at a press conference in Berlin on Wednesday afternoon. He will be joined for the first time by Elga Bartsch, a former economist at asset manager BlackRock and investment bank Morgan Stanley, who was named this month to head the department’s economic policy department.
Chancellor Olaf Scholz said in an interview with Bloomberg last week that he was confident Germany would escape recession this year, despite the country’s energy crisis following the Russian invasion of Ukraine. Introducing more diversity in the gas supply has been key to keeping the economy going, according to Scholz. Russia shut off gas to Germany last year in response to sanctions against the country.
Stagnation
Germany’s statistics office announced earlier this month that the economy probably stagnated in the fourth quarter, while it was expected to contract. For the full year of 2022, the German economy grew by 1.9%, compared to 2.6% in 2021.
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
