The German central bank, the Bundesbank, says the German economy stalled in the second quarter due to supply bottlenecks and the war in Ukraine. In the monthly bulletin for July, published this Friday, the Bundesbank says that the German economy “may have stalled in the spring of 2022”.
The Bundesbank had said in June that the German economy had made some progress in the second quarter after the lifting of pandemic restrictions, but that inflation was holding back consumption. “In the spring of 2022 the german economy can grow a little“, the Bundesbank economists had said in June, in the previous report.
Now economists are also more pessimistic about growth in the third quarter, which began in early July.
In the current quarter, the growth of the Gross Domestic Product (GDP) could be, from the current point of view, a little weaker than in the base scenario of the Bundesbank projections of June 2022″, it adds in the bulletin of July .
The German central bank forecast in June that the German economy will grow by 1.9% in 2022, compared to 4.2% in December projections, with inflation at 7.1% (3.6%), provided that the situation is not aggravated by the war in Ukraine.
high inflation is weigh on the purchasing power of families and the uncertainty about the energy supply is reduce private consumption in Germanyaccording to the Bundesbank.
The German central bank forecasts that inflation will remain high in the coming months and may even rise in September because some state measures will disappear, such as the discount on gasoline and the monthly transport ticket of nine euros for three months, June, July and August. . .
Source: Observadora
