German authorities have significantly downgraded their forecasts for German economic growth this year

2022-06-07 0 By

Germany’s Council of Economic Advisers released a report on Wednesday, lowering its 2022 economic growth forecast to 1.8 percent from 4.6 percent in November.According to a report by Xinhua News Agency, the conflict between Russia and Ukraine has led to higher energy prices and inflation, which has greatly increased the uncertainty of the economic outlook.The report expects the German economy to grow 3.6% in 2023, with inflation of 6.1% this year and 3.4% next.Monika Schnitzer, a member of the Council of Economic Advisers, said Germany is heavily dependent on Russian energy supplies, and stopping those supplies could push the German economy into recession and inflation even higher.The spring forecast by the Kiel Institute for The World Economy, a German think-tank, argued that the conflict between Russia and Ukraine was putting “clear strains” on the German economy and adding to already high inflationary pressures.The report lowered its forecast for German growth this year to 2.1% from 4%.The Council of Economic Advisers is made up of five economic experts appointed by the German president, also known as the “Wise Five” committee.