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Recession fears fall off for Germany.

 

Recession fears fall off for Germany.

The positive figure came after the German federal statistics office reported that the economy expanded by 1.9 per cent last year. However, the office expects stagnation in the fourth quarter, against previous analyst expectations of a contraction. In addition, a surge in gas prices after Russia’s invasion of Ukraine led to fears of a significant downturn in Germany’s energy-intensive manufacturing sector. However, energy prices have fallen sharply recently to levels last seen before the war’s outbreak.

Extensive government support for businesses and households has also helped soften the impact of the energy crisis. That support, and the lifting of Covid-19 restrictions in China, fuelled a boost in consumption that offset the economic blow of the war in Ukraine, according to the Zew Institute. Moreover, the 40.2-point leap in investor morale follows a recent German inflation rate slowdown. According to finalised inflation data published yesterday by the German federal statistics office, harmonised consumer prices rose by 9.6 per cent in the year to December versus the 11.3 per cent figure recorded for the previous month.

The inflation figures, however, reflected a drop in gas and fuel inflation resulting from government subsidies and falling oil prices.


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  1. Jessie18 January 2023 at 13:02

    The German government did its job well to help with this. And they did help a LOT. You can't go from real fears of a recession to having a growing economy without the vast help of the government.

    ReplyDelete
    Replies
    1. Tom18 January 2023 at 15:05

      Yes, the German government reacted immediately to the crisis they were in last year and as such, with all the subsidies they gave. their economy is and will grow.

      Delete
  2. Marco18 January 2023 at 18:39

    Wasn't expecting Germany to do so well so quickly in 2023. It's still early but things are looking up for their economy.

    ReplyDelete

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