Rising prices and declining economic growth in Germany / What do experts say?
According to economists, given the state of the war in Ukraine and its consequences for European countries, it shows that the country’s economic growth rate is constantly declining this year, and now prices have risen and people are worried.
Deutsche Welle said the German Council of Economic Experts, made up of five leading economists and known as “economic sages”, had released a new forecast for the German economy this year and next.
Experts say the consequences of the war in Ukraine are currently difficult to assess, especially as further escalation of the conflict and the expansion of sanctions against Russia could have a significant impact on the German and European economies. Known as the “Economic Wise Men”, he released his new forecast for the German economy this year and next.
They have revised their previous assessment of the aftermath of the Ukraine war and concluded that Germany’s GDP will grow by 8.1 percent this year. For next year (2023) growth of 6.3 percent is forecast.
The “Economic Wise” group expected 6.4% growth for the German economy last November, despite the Corona pandemic. Presents himself about the prospects of the German economic and trade cycle. The council reviews its forecast only in critical situations.
Given the high price of energy, which is just one of the consequences of Russia’s invasion of Ukraine, inflation is likely to reach 1.6 percent this year. The Council of Economic Experts believes that inflation will reach 4.3 percent in 2023.
The rise in prices in Germany this year is dramatic and worrying, unprecedented since the oil crisis of the 1970s.
Reduction in dependence on Russia.
Germany is heavily dependent on Russian energy resources, and it is unclear where the fate of energy imports from the country will go. On Wednesday, March 30, German Economy Minister Robert Hubb announced the start of the first phase of his country’s “gas emergency plan”.
The “gas emergency plan” is carried out within the framework of EU regulations; Regulations designed to ensure the security of the gas of the member countries of the union. The plan has three phases including initial warning, final warning and emergency.
The first stage can be announced when there are tangible, serious and reliable signs of a possible event, which is likely to lead to a significant deterioration in gas supply.
Now that the first phase of the project has been announced in Germany, the government must ensure that the country supplies gas without Russian help. A delegation of economic experts has been hired for this purpose.
