Percorso:ANSA > Nuova Europa > Germany > German recession will be worse than feared: institutes

German recession will be worse than feared: institutes

High inflation, industrial slowdown hit Europe's top economy

28 September, 13:37

(ANSA-AFP) - FRANKFURT AM MAIN, SEP 28 - A recession in Germany this year will be worse than previously feared, leading economic institutes warned Thursday, as high inflation and an industrial slowdown hit Europe's top economy. The economy will shrink 0.6 percent in 2023, the institutes said in their latest joint forecast. They had all flagged in recent months that a downturn was expected, although the figure is worse than those previously mentioned. "The most important reason for this revision is that industry and private consumption are recovering more slowly than we expected," said Oliver Holtemoeller, from the Halle Institute for Economic Research, one of the five groups behind the forecast. German policymakers face challenges on multiple fronts -- from still-high inflation that began surging after Russia invaded Ukraine, to weakness in manufacturing and the impact of record eurozone interest rates.
    (ANSA-AFP).
   

© Copyright ANSA - All rights reserved