The IMF expects Germany to return to growth in 2024
Germany’s economy is set to contract slightly this year due to the shock in energy prices and tightening financial conditions. There will therefore be negative growth in Europe’s largest economy, with uncertainty “unusually high” and with the prospects for a return to growth moved to 2024.
I hit him from the gas
That’s what he formulated International Monetary Fund (IMF) following the customary annual inspection under Article 4 of the Washington institution’s charter.
“The German economy – underlines the Fund in the final statement – has shown resilience after the closure of the Russian market of gas supply last year. There have been highly adverse scenarios of widespread energy shortages. Avoided thanks to strong efforts to save gas and secure energy supplies, as well as the lack of harsh winter weather.
Economy in recession
“However, the negative effects of the energy shock and the tightening le financial conditions have been enough to plunge the economy into recession in recent months – explained the IMF -. Inflation has risen as the shock in energy prices has added to the already existing ones related to the pandemic. Although now inflation is coming down with the attenuation of these effects”.
“Gross domestic product is expected to gradually regain momentum in 2024 and 2025 as the lagged effects of monetary tightening dissipate and the economy adjusts to the energy shock,” the Fund said in its report on Germany.
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