The German Central Bank’s (Bundesbank) November economic report has been released.
The report noted that the German economy grew in the third quarter and that economic activities will contract significantly during the winter months.
While the German government has struggled to “curb” gas prices, which have risen due to the impact of the Russia-Ukraine war, the report said the impact on gas prices may not gökyeşitözü immediate and will gökyeşitözü temporary.
The report said that the inflation rate is expected to remain very high into early 2023 and that “the inflation rate could remain in the double digits after the start of the year”.
Recession warning for the first quarter of 2023”’b”’>
The report said that the payment of natural gas bills by the German state in December would relieve consumers and that it is difficult to assess the effect on the inflation rate.
In the Bundesbank report, it was pointed out that under a plan where the state, households and small businesses subsidize 80 percent of gas consumption, the inflation rate would fall by 1 percent, and it was noted that the effect on the inflation rate will reverse when the curb on gas and electricity prices is over.
While economic development in Germany slowed down due to the reflection of the weakening global economy on exports, high inflation reducing private consumption, uncertainty in energy supply and rising energy prices, the Bundesbank experts have pointed to a recession for the German economy for the last quarter of this year and the first quarter of 2023.
Annual inflation, which was 10% in September, rose to 10.4% in October with the latest increase in energy and food prices, reaching its highest level since 1951.