Germany’s economy faces a deeper-than-expected slump as it grapples with an energy crisis and supply chain disruptions, according to economists cited by the Telegraph.
Germany, long regarded as an industrial powerhouse and the economic engine of Europe, is now grappling with a more severe downturn than previously anticipated, a new report by The Telegraph shows.
Economists have issued warnings of an impending economic slump due to the country’s energy crisis and disruptions in supply chains.
Despite initial forecasts suggesting that Germany would avoid a recession, a consortium of influential economic institutes has conveyed to the German government that stagnation is eminent.
Germany’s Gross Domestic Product (GDP) is projected to contract by 0.6% this year, a significant departure from the earlier forecast of 0.3% growth predicted in the spring.
The year commenced with a winter recession in Germany, which subsequently plateaued in the three months leading up to June.
However, the country is now experiencing a renewed contraction, with an expected decline of 0.4 percent in the third quarter of the year.
Germany’s prospects of avoiding a full-blown recession hinge on meeting growth forecasts of 0.2 percent of growth in the fourth quarter of the year.
Source: Almayadeen
