German economic advisers slash 2022 growth forecast to 1.8%
The German government’s panel of independent economic advisers has slashed its 2022 growth forecast for Europe’s biggest economy in light of Russia’s invasion of Ukraine and concern over energy supplies and prices
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.The German government's panel of independent economic advisers on Wednesday slashed its 2022 growth forecast for Europe's biggest economy in light of Russia's invasion of Ukraine and concern over energy supplies and prices.
The group forecast that Germany's gross domestic product will expand by only 1.8% this year, compared with the 4.6% it predicted in November.
Last year, the country's GDP grew by 2.8%; in the final quarter of 2021, it shrank by 0.7% compared with the previous three-month period.
“The high dependence on Russian energy supplies entails a considerable risk of lower economic output and even a recession with significantly higher inflation rates.,” the panel said.
The economists said in a statement that “Germany should immediately do everything possible to take precautions against a suspension of Russian energy supplies and quickly end its dependence on Russian energy sources.”
They added that “in the long term, the goal must be to ensure higher energy security, for example by expanding renewable energies and diversifying energy imports.” Those steps reflect the German government's policy.
Shortly before the economists released their forecast, Germany triggered an early warning level for natural gas supplies amid concerns that Russia could cut off deliveries unless it is paid in rubles.
The panel of advisers forecast growth of 3.6% in 2023.