L ‘German economy About to face a cold winter. High inflation rates erode real income from German families and them savings. Looking at business, many consumer-related service sectors have benefited from the end of the pandemic, but consumers’ reluctance to spend is becoming increasingly evident. In line with this, the business climate has recently deteriorated significantly.
The situation in Germany described by the Ifo Institute, one of the country’s most famous research institutes, can be defined as gray. But what is more worrying is that the economic slowdown of the leading European economy could only be at the beginning.
Inflation is expected to rise to 8.1% this year and 9.3% next
Economic output should remain stagnant in the third quarter of 2022, but is likely, according to the institute, to contract 0.2% and 0.4%, respectively, in the two winters. Inflation is expected to rise by an average of 8.1% this year and 9.3% in 2023. “The main factor here is probably a drop in private consumption spendingExplain the experts of the institute.
In fact, energy suppliers will adjust electricity and gas prices in view of higher purchase costs. In particular, at the beginning of 2023 the rate of …;
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