Daily Management Review

German companies expect mild recession in 2023


Despite the energy crisis, a shortage of raw materials, and the fragility of the global economy, German businesses only forecast a slight recession for the coming year, according to a study released by the German Federation of Industry (BDI).

Economic activity will likely fall in the final quarter of 2022 and the first few months of 2023, according to BDI President Siegfried Russwurm. However, the experts only anticipate a minor decline.

There are more and more indications that the German economy will be able to avoid going into a severe recession as a result of issues with the energy supply.

Due to a decrease in the pressure from rising energy prices, Germany's annual inflation rate decreased to 11.3% in November from 11.6% in October. The German economy will expand by 1.4% this year and contract by 0.4% the next year, according to government projections.

source: dw.de