German government advisors blame energy crisis and inflation
Berlin (dpa) – The German Council of Economic Experts, an advisory body to the German government, envisages a slight decline in Germany’s economic output in 2023, mainly due to the energy crisis. In its annual report, the Council expects gross domestic product to shrink by 0.2 per cent. For 2022, the economic experts anticipate growth of 1.7 per cent. They envisage inflation rates of 8 per cent this year and 7.4 per cent next year.
The energy crisis and inflation are weighing heavily on households and businesses in Germany, the economists say, explaining that the sharp increases in energy and food prices since mid-year have led to ever greater losses in purchasing power and have dampened private consumption. At the same time, the energy crisis is putting a strain on production, especially in energy-intensive industries, while the global slowdown is weakening export demand.