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Fears that Germany could enter recession have eased.

 

Germany recession

Fears that Germany could enter recession have eased after the federal statistical agency reported the economy grew by 1.9 per cent in 2022 and was likely to have stagnated in the fourth quarter. The number was above the midrange forecast of 1.8 per cent from a Reuters poll of economists. The ministry said the economy had proved «gratifyingly resilient» in 2022, attributing its solid performance to «catch-up effects in the wake of the coronavirus pandemic and the easing of supply bottlenecks». In addition, it pointed to a 4.6 per cent increase in expenditure on private consumption over the previous year as Covid restrictions were lifted and people returned to restaurants and significant cultural events.

Decisive action last year helped us to take control of the crisis, said Robert Habeck, the economy minister. «We quickly put together legislative packages, mobilised large amounts of money to support the economy and provide relief to consumers». In a further sign of the eurozone economy’s resilience at the end of last year, industrial production rose 1 per cent in November, beating the 0.5 per cent rise forecast in the Reuters poll. Germany, by far the euro zone’s largest manufacturer, posted a 0.6 per cent expansion in industrial production for November.

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  1. Marco14 January 2023 at 17:44

    Germany's resilience is great for the whole EU. I was expecting Germany to do well but I wasn't expecting it to do well so quickly. A few months back I was thinking 2023 will be a very tough year for them. Glad to know I was wrong.

    ReplyDelete
  2. Joseph14 January 2023 at 20:12

    Let's see what the year brings but the signs are good.

    ReplyDelete

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