Germany will enter an economic recession in 2023, when the Gross Domestic Product (GDP) will fall by around 0.4%, according to government projections presented on Wednesday (12) by the Minister of Economy and Vice Chancellor of the country, Robert Habeck.
The new forecast is a revision, clearly downwards, of the forecast made in the first half of the year. , which estimated a growth of 2.5%, and coincides with those made by the main institutes of economic studies.
The negative revision of the forecasts is due, in large part, to the economic repercussions of the war in Ukraine and, in particular, the interruption of gas supplies from Russia.
Both phenomena caused sharp rises in energy prices, which put a brake on industrial production, according to German government estimates.
The high levels of inflation, which reach 8% this year and, according to the forecast, 7% in 2023, will lead to a reduction in consumption.
Habeck indicated, in the presentation of the new p official revisions, that without measures to stabilize the price of gas, inflation in 2023 could be even higher.
“These are difficult times, and the autumn projections are confirm. We are experiencing an energy crisis that is becoming more and more an economic and social crisis,” said Habeck.
“The trigger for this crisis was (Vladimir) Putin’s aggression against Ukraine. The answer can only be firmly. The European Union and international partners responded with clear sanctions, and this remains the appropriate and indispensable response,” he added.
Habeck assured that one of Putin’s purposes is to destabilize social and economic life in the Germany and Europe, which, therefore, it is necessary to do everything to stop it.
The vice chancellor also assured that the country is making progress towards freeing itself from dependence on energy imports from Russia , a situation that has been reached in recent years.
Habeck indicated that he stated that “all the financial strength of the government is required to maintain the sustainability of our economy and our jobs”.
For this reason, recalled the vice chancellor, the government created a protection umbrella worth 200 billion euros to work until 2024.
Finally, Habeck, a member of the coalition led by Chancellor Olaf Scholz, warned that current emergencies cannot allow us to lose sight of the need to follow making investments to achieve climate neutrality.