German economic advisers slash 2022 growth forecast to 1.8%

By AP News

Share:

BERLIN (AP) — The German government's panel of independent economic advisers on Wednesday slashed its 2022 growth forecast for Europe's biggest economy in light of Russia's invasion of Ukraine and concern over energy supplies and prices.

BERLIN (AP) — The German government's panel of independent economic advisers on Wednesday slashed its 2022 growth forecast for Europe's biggest economy in light of Russia's invasion of Ukraine and concern over energy supplies and prices.

The group forecast that Germany's gross domestic product will expand by only 1.8% this year, compared with the 4.6% it predicted in November.

Last year, the country's GDP grew by 2.8%; in the final quarter of 2021, it shrank by 0.7% compared with the previous three-month period.

“The high dependence on Russian energy supplies entails a considerable risk of lower economic output and even a recession with significantly higher inflation rates.,” the panel said.

The economists said in a statement that “Germany should immediately do everything possible to take precautions against a suspension of Russian energy supplies and quickly end its dependence on Russian energy sources.”

They added that “in the long term, the goal must be to ensure higher energy security, for example by expanding renewable energies and diversifying energy imports.” Those steps reflect the German government's policy.

Shortly before the economists released their forecast, Germany triggered an early warning level for natural gas supplies amid concerns that Russia could cut off deliveries unless it is paid in rubles.

The panel of advisers forecast growth of 3.6% in 2023.

Share:

Author: AP News

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Originally published by Associated Press Valuethemarkets.com, Digitonic Ltd (and our owners, directors, officers, managers, employees, affiliates, agents and assigns) are not responsible for the content or accuracy of this article. The information included in this article is based solely on information provided by the company or companies mentioned above.

Sign up for VTM Updates

Form submitted successfully!

Top Picks for Q2 2022

View More

Crypto Corner

Learn your NFTs from your BTCs