The largest European economy will face a weakening of economic activity for the rest of this year, resulting in significantly lower GDP growth than originally expected.
The gross domestic product of the German economy will grow by only 2.2 this year, instead of the originally expected 3.6 percent. The federal government expects the dynamics of Europe’s largest economy to decline by about a third. He considers the war in Ukraine to be the main cause of the dramatic slowdown in economic growth.
Shock to the economy
The German economy is thus facing another shock coming from outside after two years of covid. This consists mainly in the dramatic increase in the price of energy commodities, which is already being, and will continue to be, the price of final production.
What is the prognosis?
In 2023, however, Germany’s gross domestic product should grow by 2.5 percent, and compared to this year, Germany should take an economic breath. Nevertheless, this forecast is burdened by great uncertainty, again given the development of the war in Ukraine. The International Monetary Fund Germany predicts economic growth of 2.1 percent for this year and 2.7 percent for 2023.