The European Commission has revised down its forecasts for the growth of Germany’s economy this year, anticipating a contraction in the German economy in 2023, compared to previous expectations of slight growth.
The Commission announced that Europe’s largest economy will shrink this year by -0.4%.
Previous Commission forecasts showed that the German economy would grow by 0.2% earlier.
The European Commission also lowered its expectations for the performance of Germany’s economy during the year 2024, with data showing that Germany’s economy will grow next year by 1.1%, compared to previous expectations that it will grow by 1.4%.
At the end of last August, German Economy Minister Robert Habeck called for action to improve his country’s economic performance, after recording a zero-growth rate in the national gross domestic product in the second quarter of this year.
Habeck said, “We continue to see economic difficulties resulting from the repercussions of the energy crisis, the European Central Bank’s necessary war against inflation, and the weakness of important economic partners around the world”.
GDP growth in the strongest European economy was nil between April and June at a quarterly rate, according to final data that confirm preliminary estimates issued at the end of July.