The German Central Bank stated that a recession and double-digit inflation are expected in the German economy due to the energy crisis.
German Central Bank (Bundesbank), In the September report on the economy, He stated that there are increasing signs that the German economy has entered a recession due to the energy crisis.
According to the bank, inflation in Germany could reach double digits in the coming months.
If there is a recession, the main reason has been identified as the energy crisis.
The energy crisis, which emerged as a result of the Russia-Ukraine war, was cited as the main reason for this in the report.
Economic activities expected to contract in winter
According to the news of AA, Bundesbank’s report indicated that there are increasing signs that the German economy has entered a recession, and that economic activities will contract significantly in autumn and winter.
Support ends in August
The report pointed out that inflation could reach double digits in the next few months after some government support measures, such as 9 euro public transport tickets and fuel discounts, expire at the end of August.
Inflation 7.9 percent
Annual inflation, which was 7.5 percent in July, rose to 7.9 percent in August, the highest rate since the winter of 1973-1974, when the first oil crisis hit.