According to the German Federal Statistical Office, the country's economy did not change in the second quarter compared to the previous three months of 2022. Experts note that the stagnation is caused by difficult global economic conditions: in particular, the ongoing coronavirus pandemic, logistics disruption, rising inflation and the situation in Ukraine. German GDP growth in the second quarter was 1.4% in annual terms. In the first quarter of the year, according to the revised data, the German economy showed growth of 0.8% instead of 0.2%, which was previously reported. Economists expect that the recession in Germany may begin in the second half of the year and last at least until the spring of next year. These forecasts are based on a significant drop in the business climate index in the country – in July, the indicator fell to the lowest in two years (88.6 points). Experts attribute this to high energy prices and the threat of gas shortages. The International Monetary Fund said this week that Germany's GDP is likely to grow by 1.2% by the end of the year, and by 0.8% in 2023. At the same time, the April forecast was more optimistic – the IMF expected growth of 2.1% in 2022, and 2.7% next year.
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