News Karnataka
Wednesday, October 05 2022
Europe

Berlin: German central bank expects double-digit inflation, sees signs of recession

Photo Credit : IANS

Berlin: With energy prices through the roof, inflation in Germany could exceed 10 per cent this year with the economy heading into recession, the country’s central bank Bundesbank said in a report.

“There are increasing signs of a recession of the German economy in the sense of a clear, broad-based and prolonged decline in economic output,” Xinhua news agency quoted the bank’s monthly report issued on Monday as saying.

The institution’s economic researchers expect the German economy to shrink markedly in the fourth quarter of this year and the first quarter of 2023.

High inflation has been the main driver of the economic downturn.

The surging energy prices are weighing on the country’s energy-intensive industries, eroding private consumption and affecting service providers, the report said.

In August, Germany’s inflation rate rebounded to 7.9 per cent after falling for two consecutive months as a result of the inflation relief measures imposed by the federal government.

Since the relief measures expired at the end of August, inflation is expected to rise in September, the central bank said, adding that the rate is likely to remain double-digit in the next few months.

Germany’s gross domestic product (GDP) grew by 1.5 per cent year-on-year in the second quarter of 2022.

To reduce inflation in the eurozone, the European Central Bank has already increased its key interest rates twice this year, with further hikes likely.

Share this:
MANY DROPS MAKE AN OCEAN
Support NewsKarnataka's quality independent journalism with a small contribution.

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Leave a Reply

Your email address will not be published.

Visit 7Jackpots and find the best online casinos in India! Play the most popular casino games for real money!

Find the best odds at 10Cric and ipl betting 2021! Signup today and get up to a 100% deposit bonus.

To get the latest news on WhatsApp