LAST UPDATE: 17.47
The German government will cut its forecast for the growth of the German economy, the largest in the European Union, for 2022 to 2.2%, compared to a previous forecast of 3.6%, mainly due to the effects of the war unleashed by Russia. against Ukraine, stressed a government source from Berlin in the Reuters agency.
For 2023, the same source stressed that growth is projected to move slightly higher, to 2.5%.
After two years of a coronavirus pandemic, the German economy is facing new risks due to the war, which will have a significant negative impact on prices and supply chains, according to the revised forecast.
Concerns about energy shortages and high energy costs could further worsen the outlook for the economy, the source said. Russia, a country under heavy sanctions, is Germany’s main gas supplier.
The revised forecasts of the German government are expected to be announced next Wednesday.
Source: Capital
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