Germany Economic Snapshot

The economy is projected to grow by 1.8% in 2022, contract by 0.3% in 2023 and recover by 1.5% in 2024. Uncertainty is high amidst strong energy price volatility. High inflation is reducing real incomes and savings, damping private consumption. Despite weakening external demand, export growth will recover through 2023 due to easing supply chain bottlenecks and a record-high order backlog.

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Die Wirtschaft wird den Projektionen zufolge 2022 um 1,8 % wachsen, 2023 um 0,3 % schrumpfen und 2024 wieder um 1,5 % zulegen. Die Unsicherheit ist angesichts der starken Volatilität der Energiepreise hoch. Die hohe Inflation schmälert die Realeinkommen und Ersparnisse, wodurch der private Konsum gedämpft wird.

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The pandemic is likely to accelerate digitalisation with new business models and increases in demand for teleworking, telehealth services and remote learning. The energy transition requires changes in behaviour, consumption and production. In order to face these challenges while supporting the recovery, Germany needs to boost investment in infrastructure and knowledge-based capital, revive business dynamics and address skills bottlenecks.

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