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NewsRescue
According to Bloomberg, the German economy will stay stagnant in the second half of the year as it deals with the aftermath of a winter recession.
According to a survey performed by the outlet in early August, German economic output dropped in the second quarter and will stagnate in the three months through September, indicating a deeper-than-expected decline.
According to the International Monetary Fund, the EU’s largest economy will be the only G7 member to decrease this year.
According to Bloomberg, the German economy’s estimate has been cut downward, with only 0.1% growth projected in the fourth quarter, as domestic demand and exporter forecasts have both dropped.
German industry is struggling amid weaker demand from China, shortages of qualified workers, tighter monetary policy, and the protracted fallout from the energy crisis, the outlet noted.
A “generally expected recovery” “still failed to materialize in early summer,” the German Economy Ministry cautioned in a separate study released on Monday.
The country’s economic confidence has deteriorated as a result of “the country’s still weak external demand, the country’s continuing geopolitical uncertainties, the country’s still high rates of price hikes, and the increasingly noticeable effects of monetary tightening,” according to the research.
“Current leading indicators, such as new orders and the business climate, continue to point to a sustained economic recovery in Germany in the coming months,” the report concluded.
Analysts forecast that the German economy would drop by 0.3% this year, before rebounding by 0.8% in 2024, down from a previous prediction of 1%.
