11/23/2022, 12:31 PM (Source: TeleTrader)
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Buba: German economy to contract in next 2 quarters

The Deutsche Bundesbank (Buba) said in its monthly report on Wednesday that the country's economy is expected to contract in the fourth quarter of 2022 and enter a recession, as well as the first quarter of 2023.

The bank stressed that the "extent of the recession is extremely uncertain." According to the report, uncertainty about energy supply, as well as high consumer prices weighed on the economy. However, the bank noted that a gas shortage "can probably be avoided."

Buba also noted that inflation continued to surge and warned that the double-digit inflation in the country could "even last into the new year." Still, the bank noted the inflation rate could be "dampened" by the gas price brake, under which households would see a basic quota of 80% of their previous year’s gas consumption.

Baha Breaking News (BBN) / NP