Many foreign investors once again fear the increased risk of Germany, the largest economy in the European Union (EU), going into recession. One of the main reasons for the decline was the weak recovery of Germany’s key manufacturing sector. informs Bloomberg quotes statistics from analysts at the Gottfried Wilhelm Leibniz Institute for Economic Research (ZEW).
Since the beginning of May this year, the ZEW institute’s expectation index for the recovery of the German economy has dropped to -10.7. For comparison, in April this indicator was at 4.1. At the same time, economists surveyed by Bloomberg expected this indicator to drop to -5.
“Financial market experts expect the already negative economic situation to worsen over the next six months. “As a result, the German economy may enter a recession, albeit moderately,” said ZEW President Achim Wambach.
Against this background, the European Commission predicted that FRG’s economic growth will be relatively slow this year. Germany’s gross domestic product (GDP) is expected to increase by just 0.2% by the end of December. The article concludes that Germany’s GDP should increase by 1.4% next year, according to an updated estimate.
15 May European Commission (EC) analysts raised Eurozone inflation forecast to 5.8% in 2023. This figure is expected to reach 2.8% next year. Past EC forecasts implied consumer price increases in the region to be 5.6% and 2.6% in 2023 and 2024, respectively.