Germany is on the brink of recession following a winter of supply chain bottlenecks and surging Covid cases
The economy will shrink by 0.5 percent in the fourth quarter of this year, when compared with the three months of 2022.
An economy is officially in recession when it contracts for two consecutive quarters, with the expected strong post-pandemic recovery still not occurring.
Despite this news, growth is expected to peak once again next summer, provided Covid cases fall and supply chain issues ease… but the slow start to the year will undoubtedly hurt the nation.
Munich’s Institute for Economic Research expects inflation to increase by 3.1 percent this year and 3.3% in 2022, which are rates that far exceed the European Central Bank’s target of 2 percent.
In addition to this, consumer prices will not return to normal until 2023.
Last week, Germany recorded its highest daily increase in Covid deaths from Covid-19 since February.
