German economic outlook gloomy, finance ministry says

A commuter prepare passes by the skyline with its monetary district forward of the European Central Financial institution?s (ECB) governing council assembly later this week in Frankfurt, Germany, October 25, 2021. REUTERS/Kai Pfaffenbach

BERLIN, Aug 19 (Reuters) – The financial outlook for Germany, Europe’s largest economic system, is gloomy resulting from power value rises and provide chain disruptions, the Finance Ministry stated in its August month-to-month report, printed on Friday.

The German economic system stagnated within the second quarter, with the battle in Ukraine, hovering power costs, the pandemic and provide disruptions bringing it to the sting of a downturn. learn extra

“The outlook for the additional growth (of the economic system) is at present noticeably gloomy,” the ministry stated within the report, including that it was marked by “a excessive diploma of uncertainty”.

“The considerably decrease fuel provides from Russia, the persistently excessive value will increase for power and, more and more, different items, in addition to the longer-than-expected provide chain disruptions, additionally in reference to China’s zero-COVID coverage, are weighing closely on the economic system’s growth,” it stated.

The federal government will current up to date financial projections on Oct. 12, the ministry added.

Writing by Paul Carrel
Modifying by Madeline Chambers

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