If price growth in Germany remains unimpeded, there is a risk of recession in 2023, German Economy Minister Robert Habeck said on Tuesday
MOSCOW (Pakistan Point News / Sputnik - 13th September, 2022) If price growth in Germany remains unimpeded, there is a risk of recession in 2023, German Economy Minister Robert Habeck said on Tuesday.
On August 30, German Federal Statistical Office said that the annual inflation in Germany accelerated from 7.5% in July to 7.9% in August.
"If price growth and inflation remain unhindered, as we have seen, there is a risk of recession next year," Habeck said as aired by the Welt broadcaster.
Habeck also said that such a scenario could be prevented with a set of measures, including lowering energy prices.
"We can prevent it. It will be difficult and challenging, but a recession is not a law of nature. We have to develop a set of measures, we have to lower energy prices, we have to strengthen demand," Habeck added.
The energy crisis coupled with rampant inflation in Germany, as well as the government's response to it have been driving forces for protests across Germany, including the ones earlier this week in Leipzig. The German Left Party said on Monday that there would be more demonstrations unless the government takes effective measures to tackle economic problems.
