Joint Economic Forecast 2/22: Energy crisis: inflation, recession, welfare loss

The crisis on the gas markets is having a severe impact on the German economy. Soaring gas prices are drastically increasing energy costs, leading to a massive reduction of the purchasing power. Despite a decline in the second half of the year, gross domestic product is expected to expand by 1.4% this year. For the coming year, the institutes expect a contraction by 0.4%, followed by an increase of 1.9% in 2024.