German economy to contract by 0.2 pct next year: GCEE
BERLIN, Nov. 9 (Xinhua) -- The German economy is expected to slide into recession in 2023, with the country's gross domestic product (GDP) likely to fall 0.2 percent due to the energy crisis, the German Council of Economic Experts (GCEE) said Wednesday.
At the same time, inflation in Europe's largest economy is expected to fall from 8 percent this year to 7.4 percent next year.
"Should a shortage of natural gas occur in Germany, a deep recession and even higher inflation can be expected," the council's annual report said.
Driven by soaring energy prices, inflation in Germany reached 10.4 percent in October, according to preliminary figures by the Federal Statistical Office (Destatis).
To cushion inflationary pressure on consumers and businesses, the government first introduced relief measures worth 95 billion euros (95 billion U.S. dollars). Then an even bigger package worth 200 billion euros was introduced to cap electricity and gas prices. (1 euro = 1 U.S. dollar)
Photos
Related Stories
- China, Germany should keep to overall direction of bilateral ties from strategic height: Xi
- German industrial production rises despite energy crisis, supply problems
- In pics: German Bundestag in glow of sunset in Berlin
- Energy crisis exacerbates Germany's housing problem
- German health minister urges tighter COVID-19 measures amid autumn wave
- Germany to set up stabilization fund of 200 bln euros fight energy crisis
Copyright © 2022 People's Daily Online. All Rights Reserved.