German Economy May Shrink Slightly This Year, Bundesbank Says
- Central bank sees activity picking up after first quarter
- ‘Noticeable second-round effects on prices can be expected’
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Germany’s economy may shrink slightly in 2023 as companies and households start the year on a weak footing, according to the Bundesbank.
Even as the energy crisis and manufacturing bottlenecks ease, exports are subdued by softer global demand, inflation is weighing on consumption and momentum in the construction sector is cooling, the central bank said in its monthly report.