Bad news is piling up among our neighbors across the Rhine. The European Commission very significantly reduced, this Monday, September 11, its growth forecast for Germany in 2023, counting on a decline in gross domestic product (GDP) of 0.4%, compared to an expected growth of 0.2%. so far.
Brussels highlights the weakness of exports and confidence indicators in industry, particularly in energy-intensive sectors “hardly hit by the energy price shock” linked to the war in Ukraine.
Inflation continues to slow
The European Commission also reduced its economic growth forecasts for the euro zone by 0.3 points in 2023 and 2024, to 0.8% and 1.3% respectively, due in particular to the difficulties of Germany, weighed down by its industry.
On the other hand, inflation continues to slow down. Brussels now expects an average increase in consumer prices of 5.6% in 2023 (-0.2 points, compared to the latest forecasts in May) and 2.9% in 2024 (+0.1 points), according to a press release published Monday.