Germany's economic output to decline in 2023
(MENAFN) In light of sluggish international demand, rising interest rates, along with an ongoing energy crisis, Germany's economic output will decline in 2023, according to the most recent German Economic Institute (IW) prediction.
Based on the IW, the Economy is in a "shock," with businesses being particularly impacted by the geopolitical uncertainty caused by the war in Ukraine. Because of a lack of supplies and rising prices for energy and raw materials, analysts warned that German businesses and industries will "feel the global problems all the harder" in 2023.
The largest economy in the European Union is going to experience lower-than-anticipated gross domestic product due to slow global commerce and poor demand. According to the research, it is expected to decline by about 0.5 percent from 2022, and the unemployment rate will rise to 5.5 percent.
Since the beginning of 2023, inflation has been high and is forecast to remain there, impacting on consumer expenditure.
According to Professor Michael Gromling, chief of the macroeconomic and business cycle research unit at the IW, "the government urgently needs to take action to end this economic downturn."
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