AP

German economy to shrink in 2023, government advisers expect

Nov 9, 2022, 8:30 AM | Updated: 8:53 am

BERLIN (AP) — The German government’s panel of independent economic advisers forecast Wednesday that Europe’s biggest economy will shrink by 0.2% next year.

The five-member panel’s report came after official figures late last month showed unexpected growth in the third quarter, thanks to private spending.

But a weak winter, with gross domestic product declining in the last months of the year and in the first three months of next year, is still widely expected. Two consecutive quarters of negative growth is one technical definition of recession, but the 19-country euro area has a body that also uses a broader set of data including employment numbers and depth of the economic decline to determine when a recession occurs.

The advisers’ forecast of 1.7% growth this year and a decline of 0.2% in 2023 contrasts with a forecast at the end of March that German GDP would expand by 1.8% this year and 3.6% next year.

It’s still more optimistic than a forecast by the government itself a month ago, which foresaw growth of 1.4% this year and a decline of 0.4% next year.

Inflation has increased to 10.4% in October as energy prices remain high, and the problem isn’t expected to go away soon. Wednesday’s report predicted an average annual inflation rate next year of 7.4%, a little below this year’s 8%.

Officials say Germany is well-placed to get through the winter with sufficient energy after Russia cut off natural gas supplies but stress that it will still need to conserve the fuel that heats homes, powers factories and generates electricity.

Federal and state officials agreed last week on the main details of a plan to provide up to 200 billion euros (dollars) in subsidies to households and businesses to ease the strain of high gas, electricity and heating prices through 2024.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

Several hundred students and pro-Palestinian supporters rally at the intersection of Grove and Coll...

Associated Press

Pro-Palestinian protests sweep US college campuses following mass arrests at Columbia

Columbia canceled in-person classes, dozens of protesters were arrested at New York University and Yale, and the gates to Harvard Yard were closed to the public Monday.

19 hours ago

Ban on sleeping outdoors under consideration in Supreme Court...

Associated Press

With homelessness on the rise, the Supreme Court weighs bans on sleeping outdoors

The Supreme Court is wrestling with major questions about the growing issue of homelessness as it considers a ban on sleeping outdoors.

20 hours ago

Arizona judge declares mistrial in case of rancher who shot migrant...

Associated Press

Arizona judge declares mistrial in the case of a rancher accused of fatally shooting a migrant

An Arizona judge declared a mistrial in the case of rancher accused of killing a Mexican man on his property near the U.S.-Mexico border.

20 hours ago

Donald Trump appears in court for opening statements in his criminal trial for allegedly covering u...

Associated Press

Trump tried to ‘corrupt’ the 2016 election, prosecutor alleges as hush money trial gets underway

Donald Trump's criminal trial in New York over alleged hush money payments started with opening statements on Monday.

1 day ago

This satellite image from Planet Labs PBC shows Iran's nuclear site in Isfahan, Iran, April 4, 2024...

Associated Press

Israel, Iran play down apparent Israeli strike. The muted responses could calm tensions — for now

Israel and Iran are both playing down an apparent Israeli airstrike near a major air base and nuclear site in central Iran.

4 days ago

Speaker of the House Mike Johnson, R-La., talks to reporters just after lawmakers pushed a $95 bill...

Associated Press

Ukraine, Israel aid advances in rare House vote as Democrats help Republicans push it forward

The House pushed ahead Friday on a foreign aid package of $95 billion for Ukraine, Israel, Taiwan and other sources of humanitarian support.

4 days ago

Sponsored Articles

...

Midwestern University

Midwestern University Clinics: transforming health care in the valley

Midwestern University, long a fixture of comprehensive health care education in the West Valley, is also a recognized leader in community health care.

...

Day & Night Air Conditioning, Heating and Plumbing

Day & Night is looking for the oldest AC in the Valley

Does your air conditioner make weird noises or a burning smell when it starts? If so, you may be due for an AC unit replacement.

...

Fiesta Bowl Foundation

The 51st annual Vrbo Fiesta Bowl Parade is excitingly upon us

The 51st annual Vrbo Fiesta Bowl Parade presented by Lerner & Rowe is upon us! The attraction honors Arizona and the history of the game.

German economy to shrink in 2023, government advisers expect