Germany to Predict 2023 Contraction as Industry Woes Deepen
- Government sees output shrinking by as much as 0.3% this year
- Europe’s biggest economy expected to return to growth in 2024
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The German government will predict a contraction for this year instead of sluggish growth when it updates its outlook for Europe’s biggest economy next month, highlighting the nation’s plight as its industrial sector struggles.
Gross domestic product is likely to shrink again in the third quarter and expand only slightly in the final three months of the year, meaning the economy will contract in 2023 on an annual basis, according to people familiar with the revised forecast, who asked not to be identified ahead of publication.