The German Economy is on the Verge of a Recession

According to Destatis’ Federal Statistical Office, Germany‘s Gross Domestic Product (GDP) surprisingly decreased by 0.2 percent from October to December in contrast to the predicted stagnation. This can largely be attributed to weaker private consumer spending compared to the previous quarter, as observed and explained by statisticians. What will the German economy do against this recession?

German Economy Will Grow Slightly This Year

According to Destatis, the price-adjusted GDP growth for 2022 was 1.8%, which is a 0.1 percentage point revision from their original result of 1.9%. Germany‘s growth in 2021 saw an impressive 2.6% increase. However, the government’s annual economic report states that the expected slowdown at the beginning of 2022/23 will be shorter and milder than originally predicted last autumn when they assumed a drop off of 0.4%. The forecasted 2023 GDP change is now up to 0.2%.

German Economy Will Grow Slightly This Year

The Fall May Not Be As Bad As Expected

Alexander Krüger, Chief Economist at the private bank Hauck Aufhäuser Lampe, states that Germany has proven to be much more resilient than expected due to personal savings and government stabilization measures. Despite this promising news, he cautions that growth should not be celebrated just yet as structural weaknesses remain a concern for long-term economic prosperity.

Thomas Gitzel, Chief Economist at VP Bank, concurs that the winter months have certainly been trying; however, not as hard as initially predicted. It appears that Germany‘s GDP will suffer a slight decrease in this quarter.

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Ana Costa

I am resourceful and passionate about taking on whatever task lies ahead of me. I thrive in workplaces that promote diversity and inclusivity, whether it is working in journalism or being in the first place of global progressive social movements. I'm a journalist with a keen interest in reporting on daily global economic, finance, and crypto news. I have a deep understanding of how financial markets and global economies work, and I'm passionate about covering the latest developments in the world of cryptocurrency. I believe that the intersection of finance and technology is where the most exciting stories can be found, and I'm committed to staying up-to-date with the latest trends and emerging technologies in these areas. With years of experience in reporting and a strong network of sources, I strive to provide my readers with insightful and accurate coverage of the topics that matter most. Whether it's a breaking news story, an in-depth analysis of market trends, or an interview with a leading industry expert, I'm always ready to tackle the next big story and deliver it to my audience in a clear and engaging way. I focus on social media marketing, digital marketing, and market research. My strengths lie in creative marketing plans, collaboration with team members, and an eye for rising trends in different target markets.

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