© Reuters. Germany, the government expects a decline in GDP of 0.4% in 2023
The gross domestic product of Germania it will probably contract by 0.4% this year. The executive himself explained it Berlin: the Ministry of Economy specified in a statement that “the effects of the price crisis of energy productstogether with global economic weakness, weigh on the German economy more persistently than expected in the spring.”
Germany expects a recovery starting from 2024
Germany is the only G7 country to record a contraction. Even the International Monetary Fund hypothesized a decline in German GDP, predicting -0.5%. While some economic think tanks of the first European economy they spoke of a possible -0.6%.
The Berlin government added that it expects a recovery towards the end of the year, a prelude to a possible one acceleration in 2024, supported by the recovery in domestic consumption demand. The forecast is to achieve +1.3% next year, and +1.5% in 2025.
Despite the economic difficulties, Berlin supports the ECB’s hard line
Despite the economic difficulties, however, Germany continues to support the “hard” line of Central Bank of Europewhich has long since initiated a policy of monetary rigor and increase of interest rateswith the declared objective of wanting fight inflation.