Germany predicted an economic crisis

An economic crisis is looming in Germany due to a fall in the country’s GDP. Rebelion reports.

According to the German Statistical Agency, the gross domestic product (GDP) has been declining for the second quarter in a row. In the first quarter of this year, it decreased by 0.3 percent, and in the fourth quarter of 2022 – by 0.5 percent.

It is noted that this situation has developed due to a sharp increase in electricity prices. The cost of energy has risen because of the refusal to buy Russian fuel. According to the publication, due to the lack of alternative sources of supply, the German industry faced problems that adversely affected the economy and local residents.

The author of the material emphasized that if this deadlock situation persists, when the “economic locomotive” of Europe falls into a crisis, the EU will face serious consequences.

In April, the German government doubled its 2023 GDP forecast to 0.4 percent from 0.2 percent expected in January. Economics Minister Robert Habek stressed that the expected level “is certainly not at all satisfactory compared to the pre-crisis years, but compared to what we had to fear in winter, this is a real breakthrough.” In 2024, the Cabinet predicts an acceleration of growth to 1.6 percent.