The EU Commission sees the economic prospects for Germany more cautiously than the federal government: The Brussels authority only expects growth of 0.2 percent in gross domestic product (GDP) in the current year, as it writes in its spring forecast published on Monday.
That is 0.2 percentage points less than Federal Minister of Economics Robert Habeck (Greens) had predicted at the end of April.
1
percent The European Union achieves growth as a whole.
According to the Brussels figures, Germany is also lagging behind in a comparison of the euro countries: the commission expects a clearer increase of 1.1 percent in the 20 countries with the common currency, and the entire European Union will therefore grow by 1.0 percent.
Lower energy prices, more stable supply chains and a strong labor market have allayed fears of a recession, the commission said. In the autumn, the Brussels authorities had painted a very bleak picture. For Germany, she had even predicted a decline of 0.6 percent.
Nevertheless, the rising prices remain an issue for consumers and companies: The Commission is now expecting average inflation of 5.8 percent in the euro zone this year. (AFP)
