Economists are slightly more optimistic than the federal government in their annual report on Wednesday. For 2022, economists expect a growth of 1.7 percent.
The Council does not expect any noticeable relief in consumer prices for the time being: The inflation rate is estimated to be 8 percent this year and 7.4 percent next year.
The German Council of Economic Experts, which advises the federal government, wrote that the energy crisis and inflation are placing a heavy burden on households and businesses. Since the middle of the year, the sharp rise in energy and food prices has resulted in ever-increasing loss of purchasing power and reduced private consumption.
At the same time, the energy crisis negatively affects production, especially in energy-intensive industries. The global slowdown weakens export demand.
(SDA)