Connect with us

Hi, what are you looking for?


German government economic council cuts growth forecast by half

FRANKFURT — The German government’s council of economic advisers drastically reduced its growth projections, pointing to Russia’s war on Ukraine and surging energy prices.

The eurozone’s largest economy is now expected to grow by 1.8 percent this year, after a previous forecast of 4.6 percent.  The council said Germany’s economy is now unlikely to reach pre-pandemic levels before the third quarter.

For next year, advisers put GDP growth at 3.6 percent.

Inflation is expected to climb to 6.1 percent this year, more than three times the European Central Bank’s price stability target, before declining to 3.4 percent in 2023.

The outlook is subject to very high uncertainty. Further intensification of the conflict in Ukraine and an expansion of sanctions against Russian entities could put significant additional strain on the German and European economies, the council cautioned.

“Germany is heavily dependent on Russian energy supplies. A suspension of these supplies entails the risk that the German economy slides into a recession with significantly higher inflation rates,” said council member Monika Schnitzer.

Click to comment

Leave a Reply

Your email address will not be published.

You May Also Like


In what sounds like bargaining rather than an unconditional promise, Russian President Vladimir Putin toyed with the idea of reopening the Odesa port for...


ATHENS — Greece accused Iran of “piracy” after Iranian forces seized two Greek oil tankers in the Persian Gulf in apparent retaliation for Greece’s...


The German government will stop all investment guarantee schemes for companies looking to invest in the Xinjiang region of China due to the deteriorating...


5 ans à l’Elysée (FR) Running time: 139 min (in three parts)Directed by the Président de la RépubliqueStarring: Emmanuel MacronGuest starring: The French government,...


Ivo Daalder, former U.S. ambassador to NATO, is president of the Chicago Council on Global Affairs and host of the weekly podcast “World Review...


A tentative compromise is being hashed out among EU countries over plans to sanction Russian oil imports, in an attempt to find a way...


Investments in fossil fuels have to be stamped out, except when they help Europe end its catastrophic dependence on Russian gas. That was the...


Ukraine wants the world to see the true cost of Russia’s brutal invasion. And there’s a digital tool which is perfect for that. Kyiv’s...