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Due to the war in Ukraine the German government significantly lowers its economic forecast for this year. It is also not expected that high prices of consumer goods will fall soon.
As a result of the war in Ukraine the German government expects weaker economic growth in Germany this year and predicts clear risks to the economy. According to the latest forecasts, the growth of gross domestic product this year is only 2.2 percent and in 2023 about 2.5 percent. In January the federal government forecast a 3.6 percent increase for this year.
Robert Habeck
“The risks to the economy are clear,” said Economy Minister Robert Habeck. “After two years of the corona pandemic, the Russian war has added a new burden. “The war against Ukraine and its economic effects remind us that we are not invulnerable.” Germany will be liberated step by step from the bracket of Russian energy imports. “At the same time, the German government is doing everything possible to preserve the substance of our economy, even in difficult times, by creating a shield for our companies, which we will use soon.” – said Habeck.
The German government does not expect high prices for consumer goods to fall soon. An inflation rate of 6.1 percent is expected for this year.
Until now such inflation levels in Germany have existed only during the oil crisis or immediately after the reunification of Germany. But according to forecasts, next year the inflation rate will be much lower again by about 2.8 percent. Due to the massive rise in energy prices, the inflation rate in Germany reached 7.3 percent in March./DW
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