German economy is expected to contract this year, predicts European Commission

The European Commission today said that German economy is expected to contract this year. Germany’s gross domestic product is now forecast to shrink by 0.4 per cent in 2023, compared to a previous prediction of 0.2 percent growth. The Commission said, Ukraine conflict and its toll on energy prices hit the manufacturing sector. It said, the 20-member bloc entered a recession in the first quarter of the year. The economic slowdown is a result of weakened demand due to high inflation rates.

Germany’s manufacturing and export-oriented economy has been hit by higher energy prices and slowing demand in China. The Eurozone is also expected to post a slower growth than expected at 0.8 percent in 2023, down from 1.1 percent. It is expected to post a 1.3 percent growth in