The economy in Germany has grown again.
(Photo: mauritius images / Manfred Bail / imageBROKER)
Berlin Despite inflation, the Ukraine war and ongoing supply problems, the German economy grew last year. The gross domestic product rose by 1.9 percent, as announced by the Federal Statistical Office on Friday. Because of the energy crisis, however, the economy was unable to build on 2021, when the economy grew by 2.6 percent.
Most experts expect a slight recession for the current year. The severe economic slump expected at times is unlikely to occur. “There is now a consensus that there will be no deep recession like after the financial crisis or Corona in the euro area and in Germany,” said Commerzbank chief economist Jörg Krämer.
“After all, a gas shortage has become unlikely.” The Kiel Institute for the World Economy (IfW) expects growth of 0.3 percent this year, which should accelerate to 1.3 percent in 2024.
In 2022, the German state budget slipped into the red for the third year in a row. The expenditures of the federal, state, local authorities and social insurance exceeded the income by 101.6 billion euros, as the statistical office announced in an initial estimate.
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GDP to German GDP growth
This corresponds to a deficit of 2.6 percent of the gross domestic product. It is therefore lower than in the two previous years, which were characterized by high costs as a result of the Corona crisis: the deficit was 3.7 percent in 2021 and 4.3 percent in 2020.
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