Most forecasters expect German gross domestic product (GDP) growth to be around 2-2.5% this year, lower than the 2.9% growth achieved last year. Some think it could even fall into recession in the second half of 2022, if the knock-on effects of the war in Ukraine worsen.
Dr Gaurav Ganguly, head of Europe, the Middle East and Africa economic research at Moody’s Analytics, is downbeat about the immediate future for the German economy. “While we still expect the recent relaxation in Covid-19-related restrictions to support economic activity, especially in contact-related service industries, the growth outlook for Germany has darkened considerably in recent months,” he says.
