US News Germany controls in recession - according to leading economic research institutes, the loss of prosperity

13:20  29 september  2022
13:20  29 september  2022 Source:   finanzen.net

supervisor: Germany's banks mostly crisis festival

 supervisor: Germany's banks mostly crisis festival Banks and Sparkassen in Germany, according to the supervision of the supervision, are sufficiently solid in a difficult year 2023. But the concerns grow in view of a mixture of economic departure, stubbornly high inflation and not yet expired Corona pandemy. «We all don't know how windy it really becomes. But the conditions for a perfect storm are given, »said the top banking supervisor of the financial supervision Bafin, Raimund Röseler, in Frankfurt.

Germany controls directly into a recession - with loss of wealth and violent consequences for consumers.

Trübe Aussichten: Die deutsche Wirtschaft wird laut Prognosen im kommenden Jahr schrumpfen. © Lisa Ducret/dpa cloudy views: According to forecasts, the German economy will shrink in the coming year.

"The loss of prosperity due to the drainage of income from higher energy prices will also exist in the long term," said Economic researcher Torsten Schmidt from the Leibniz Institute for Economic Research in Berlin. "This is not a temporary phenomenon, that will keep us busy."

In their autumn report, the economic researchers of several institutes predict a recession for Germany: Three quarters in a row will shrink the economy, in the summer quarter that ended, in autumn and early 2023.

Electoral test for Scholz in a Germany anxious by inflation

 Electoral test for Scholz in a Germany anxious by inflation © Joe Klamar The German Chancellor Olaf Scholz gives a press conference following an informal summit in the European Union (EU) in Prague, in the Republic Czech, on October 7, 2022 The Social Democrats of Chancellor Olaf Scholz spent an electoral test on Sunday, a regional ballot in Lower Saxony, in a Germany anxious by inflation. The 6.1 million voters of this region in the northwest of the country are called to the polls to renew the local parliament, dominated by a coalition between the Soci

Detail of economic performance by 0.4 percent

for the year 2022 The experts because of the better first half of the year with a small economic growth of 1.4 percent, for 2023 they then predict a decline in economic output by 0.4 percent.

«The main burden is currently taking place in private households, which have to accept massive loss of purchasing power. And it will strengthen itself in the course of next year, »said Economist Schmidt. Most companies, on the other hand, would still be quite clear with the situation.

recovery until 2024

, the researchers rate the economic situation significantly worse than in spring. They almost halve their forecast for 2022. In April, they had expected the German economy of 2.7 percent in the current year and 3.1 percent in the coming year. It was only for 2024 that the researchers expect a declining tension on the energy markets and thus also an economic recovery.

, on the other hand, does not currently expect a lack of gas. "No gas shortage in Germany is expected in the coming winter," said Schmidt. The supply situation remains extremely tense.

No more gas exit from Nord Stream 2 .
Berlin. The damaged gas pipeline Nord Stream 2 no longer starts gas. The pressure in the gas line in the Baltic Sea has now fallen to the same level as the water pressure. © Rune Dyrholm Bubbles and Strudel on the water surface over a gas leak in the Baltic Sea (archive picture). said that Ulrich Lissek, spokesman for the operating company, on Saturday of the AFP news agency. However, Germany, Denmark and Sweden announced a joint investigation into the pipeline explosions.

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