Berlin was drafted yesterday with its financial institutions Germany, but also international credit institutions, which have repeatedly spoken about the impending recession in the largest European economy. One day after his warning IMF that Germany will slide into recession next year, the German finance ministry yesterday sharply revised down its April forecast for growth of 2.5% next year and predicted that the country’s GDP would contract by 0.4% in 2023. The reason, of course, will be the energy crisis, which will affect industrial production and limit consumer spending. In addition, the company revised its growth estimate for this year to 1.4% from its previous estimate of 2.2%. “Times are difficult,” Economics Minister Robert Hambeck said during the official government assessments, adding that “we are facing a severe energy crisis that is rapidly developing into an economic and social crisis.”

The country’s finance ministry predicts a 0.4% contraction in GDP in 2023.

This was preceded on Tuesday by the IMF warning about the deterioration of the global economy and a downward revision of its forecast for global economic growth to 2.7% from 2.9%. As pointed out by the Fund, Germany is particularly vulnerable to an energy crisis due to its high dependence on Russian hydrocarbons, which has gradually increased over the past decades. It should be noted that to extend the operation of Germany’s two nuclear reactors that have not yet been shut down, it is estimated that projects totaling 100 million euros will be required. The assessment belongs to sources who understand this issue and have spoken to the international media. The last time the German economy contracted was in 2020 with the first wave of the coronavirus pandemic, and it contracted again in 2009 amid the global financial crisis. Meanwhile, the estimates of the German government regarding the development of the price front are extremely pessimistic, since, according to its estimates, they will increase by 8% this year and by 7% in 2023, while its previous estimate spoke of an inflation of 6.1 % and 2.8%, respectively.