The head of the German Central Bank did not rule out a recession in the winter
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Inflation in Germany could hit “double digits” this fall, according to Bundesbank President Joachim Nagel. He also did not rule out that the country’s economy will face a recession in the coming winter.
In an interview Rheinische Post Mr. Nagel said that inflation of 10% is possible in Germany during the autumn months. “The double-digit inflation rate was last measured in Germany over 70 years ago,” he said.
According to him, the problem of rising inflation “will not disappear even in 2023.” “If the energy crisis reaches its climax, it is possible that a recession will begin in the coming winter,” warned Joachim Nagel.
Interviewed by Bloomberg spokethat recession risk in the eurozone has risen to its highest level since November 2020. It is expected that Germany will be the first to suffer, whose economy will go into stagnation in the current quarter. By July, the business activity index (PMI) in the eurozone fell up to 49.9. The fact that it was below 50 signals a reduction in activity.
Details – in the material “Kommersant” “Eurozone remains in the black”.
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