MOSCOW: The German economy has had the lowest growth among all economies in the euro area since the beginning of the COVID-19 pandemic, the German Council of Economic Experts said Wednesday, reported Sputnik.
“The COVID 19 pandemic and the energy crisis have left their marks in Europe and especially in Germany. German output is still just below the level it was at when the pandemic started almost four years ago. Since the beginning of the pandemic, Germany has had the lowest growth among all economies in the euro area,“ the council said in an annual report dubbed “Overcoming Sluggish Growth – Investing in the Future.”
The council cited the sharp rise in energy prices last year and the high share of energy-intensive industries in Germany as the reasons for this development.
“However, the medium- and long-term projection of Germany’s potential output … points to clear obstacles to growth in the coming decades, irrespective of the current economic weakness,“ the report read.
The council expects Germany’s gross domestic product (GDP) to decline by 0.4 per cent in 2023 but also expects a 0.7 per cent GDP growth in 2024. The council also “forecasts an average inflation rate of 6.1 per cent for 2023 and 2.6 per cent for 2024.” – Bernama, Sputnik