Categories: Economic News

Gloomy German economic outlook, says finance ministry

BERLIN (Reuters) – The economic outlook for Germany, Europe’s largest economy, is clouded by rising energy prices and supply chain disruptions, the finance ministry said in its monthly report for August, published on Friday.

Germany’s economy stalled in the second quarter, with the war in Ukraine, rising energy prices, the pandemic and supply disruptions pushing it to the brink of recession.

“The outlook for the future development (of the economy) is currently remarkably gloomy,” the ministry said in the report, adding that it was marked by “a high degree of uncertainty.”

“Significantly lower gas supplies from Russia, persistent increases in energy and, increasingly, other commodity prices, as well as longer-than-expected supply chain disruptions, also in relative to China’s zero COVID policy, they are weighing heavily on the development of the economy,” he said.

The government will present updated economic projections on October 12, the ministry added.

(Writing by Paul Carrel; Editing by Madeline Chambers)

Copyright 2022 Thomson Reuters.


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