Germany’s economic outlook bleak, finance ministry says

Commuter trains pass through the skyline of the financial district before the European Central Bank (ECB) Council meeting later this week in Frankfurt, Germany, October 25, 2021. REUTERS/Kai Pfaffenbach

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BERLIN (Reuters) – The economic outlook for Germany, Europe’s largest economy, is bleak due to rising energy prices and supply chain disruptions, the finance ministry said in its August monthly report on Friday. Stated.

The German economy stagnated in the second quarter and was pushed to the brink of recession by the war in Ukraine, high energy prices, pandemic and supply more

“Prospects for further development (of the economy) are currently remarkably bleak,” the ministry said in a report, adding that it was characterized by a “high degree of uncertainty.”

“A longer-than-expected supply chain disruption in connection with a significant reduction in gas supplies from Russia, persistently high energy prices, rising prices of other commodities, and China’s zero-coronavirus policy. It’s weighing heavily on us. It’s economic development.”

The government will release its latest economic forecast on 12 October, the ministry added.

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Written by Paul Carell Edited by Madeleine Chambers

Our Standards: Thomson Reuters Trust Principles.

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