continuous war in Ukraine could have devastating effects on German economy this is yearFrom cutting growth Expectations to advance the larger eurozone economy In the recession, the center of the country bank Monday warned.
“Archaeology of Russians invasion on Ukraine should significantly weighs on German activity in March ” latest A report from the Bundesbank, which looks at economy that was just out of influences of coronavirus pandemic.
“Strong recovery is expected for The second quarter It could, from today’s point of view… out to be noticeably weaker.”
The latest report of the Bundesbank says The largest in Europe economy can be “slightly sluggish” in The first quarter. Other economists have already Expect a recession between January and March, which will put Germany in Technical stagnation, since final quarter of 2021 also Economic registration decline.
two consecutive quarters of Recession meets the definition of Technical stagnation.
However, the bank I noticed that many companies have survived The latest wave of corona virus is relatively good and this shortage of raw materials They were showing signs of Allow up.
“But of Russians invasion of Ukraine, problems in Delivery chains can go wrong already in March.”
It will be paired with Expected increase in energy prices. This is likely to reduce consumption private families and production in energy-intensive industries.
The last is sharp price Increases are unlikely to decrease back At what time soon. “because of the war in Ukraine, inflation rate will probably climb in The next A few months, mostly due to energy prices.”
Inflation soared in Germany again in February, above the 5% mark: consumer inflation reached 5.1% jump on same month a year since. Gasoline, gas and heating oil were they main contributors to jump.
“the prices for Food and industrial materials should also See the increases due to the collapse of wheat exports out of Ukraine and Russia as well because of new . said bank.
