Germany Forecasts Economic Contraction in 2022 Due to Energy Crisis Before Moderate Growth Resumes

The German government forecasts the country's economy will shrink by 0.4% in 2022.

This revised forecast is down from the 0.4% growth predicted in April.

The economic contraction is attributed to energy price crisis and global weakness.

GDP is predicted to increase by 1.3% in 2023 and 1.5% in 2025 as inflation declines.

Inflation is expected to average 6.1% this year but drop to 2.6% in 2023 and 2% in 2025.