Official data last July showed that the German economy settled without achieving any growth rates in the second quarter of the year, as the crisis in Ukraine and the pandemic pushes and supplies of supplies with the largest economy in Europe to the brink of shrinkage.
Contrary to estimates that projected a gain of 0.0 percent, the German Federal Statistics Office reported that the gross domestic product remained steady at zero percent on a quarterly basis.
In the second quarter, 1%.
However, as the statistics office revised the growth during that quarter by raising to 0.8% from 0.2%, the performance of the German economy in the first quarter of the year was stronger than it had been reported in the first reading.
In a news conference on Wednesday, German Economy Minister Robert Habik stated that the biggest economy in Europe is presently experiencing a challenging energy crisis, which is evolving into a “economic crisis.”
He clarified that in order to lower high costs over the course of the upcoming year, the German government is relying on a strategy to establish an energy price cap.
On October 7, European Union officials gathered in Prague to discuss the dilemma of skyrocketing energy prices as they grappled with the fallout from Russia’s invasion of Ukraine.
Poles accused Germany of being “selfish” in how it handled the energy crisis that was anticipated for the winter as a result of Russia’s war in Ukraine. The differences between the leaders of the European Union countries have also returned to setting a ceiling for gas prices and rescue packages in each country to float on the surface once again.
The majority of the European Commission’s member nations want it to propose a maximum gas price, but the specifics are in disagreement since some capitals want to impose a blanket cap on all gas import and trading agreements, while others would rather simply apply it to the electricity market.
Setting a cap on gas prices is one of several ideas and plans put up by European nations to deal with the sharp rise in costs and the decline in Russian gas supply, which met 40% of Europe’s gas demands.
Despite having dropped from their peak this year, gas prices are still significantly higher than they were at the start of September the previous year.
In 2023, the biggest economy in Europe might experience a recession, according to this %.
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