Economists predict recession in 2023

Created: 2022-09-29Updated: 2022-09-29 10:44 am

Gloomy prospects: According to forecasts, the German economy will shrink in the coming year.

© Lisa Ducret/dpa

Energy prices are exploding - but the peak will probably not be reached until mid-2023.

Economic institutes expect economic output to shrink for three quarters in a row in the coming year.

Berlin - In view of the energy crisis, the leading economic research institutes are expecting a significant loss of purchasing power in private households.

The situation will worsen in the coming year, as the highest consumer prices for energy are not expected until mid-2023, said economic researcher Torsten Schmidt from the Leibniz Institute for Economic Research on Thursday in Berlin.

Private consumption will not recover until 2024.

As has already been announced, the institutes are forecasting a recession for Germany in their autumn report.

The German economy will shrink for three quarters in a row.

For 2022 as a whole, the experts still expect small economic growth of 1.4 percent due to the better first half of the year, for 2023 they then predict a decline in economic output by 0.4 percent.

However, the institutes are not currently expecting a gas shortage.

"On average, no gas shortage is to be expected in Germany in the coming winter," said Schmidt.

However, the supply situation remains extremely tense.

dpa