Ukraine-News: Economic methods lower growth forecast for 2022 significantly

Created: 03/30/2022, 10:32 am

According to a report, the war in Ukraine prompted economic experts to lower the economic forecast for Germany.

(Iconic image) © Oliver Berg/dpa

According to a report, the war in Ukraine prompted economic experts to lower the economic forecast for Germany.

The inflation rate is also expected to be significantly higher.

According to a report, the Council of Economic Experts has revised its economic forecast significantly downwards because of the Ukraine war*.

In their current forecast, the so-called economic experts are only assuming growth in German gross domestic product of 1.8 percent in 2022, the

reported on Wednesday night.

In their last economic forecast in November, the economists still assumed growth of 4.6 percent.

Correct economy due to Ukraine war growth forecast

The new growth forecast for 2023 is 3.6 percent.

"The Russian war of aggression against Ukraine increases uncertainty considerably, dampens growth and contributes to the increase in energy and consumer prices," according to the

in the forecast.

Europe is particularly affected by this.

The German Council of Economic Experts is forecasting economic growth of 2.9 percent for both 2022 and 2023 for the euro area.

For the forecast, economists assume that energy prices will remain elevated, but that Russian energy supplies will not be stopped.

According to the report, however, the economists point out: “The high dependency on Russian energy supplies carries the considerable risk of lower economic output and even a recession with significantly higher inflation rates at the same time.”

Strongly rising energy prices: higher inflation rate expected

As a result of the sharp rise in energy prices, the German Council of Economic Experts also expects a significantly higher inflation rate.

The estimate for Germany is now 6.1 percent for 2022 and 3.4 percent for 2023.

Previously, the economists estimated inflation for the current year at 2.6 percent.

The inflation rate in the euro area is forecast at 6.2 percent for the current year and 2.9 percent for the coming year.