Bundesbank Sees German Economy Contracting Through Mid-2023
- Institution lowers GDP outlook, raises inflation forecasts
- ECB mustn’t let up in efforts to reduce price pressures: Nagel
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The German economy will shrink through the middle of next year as businesses and households struggle with high energy costs — before a nascent recovery takes hold, according to the Bundesbank.
Output is seen declining by 0.5% in 2023, the institution said in an update to its economic forecasts. Growth will be weaker than previously projected in 2024, while the inflation outlook was revised up.