Bundesbank blues: Stagflation in the cards

… “There are increasing signs of a recession of the German economy in the sense of a clear, broad-based and longer-lasting decline in economic output,” it said.

The country will probably be able to avoid the dire situation outlined in an adverse scenario in the institution’s June projections, which foresaw an overall decline of 3.2% over the course of 2023, yet the outlook is still “extremely uncertain.”

Inflation rates are also set to rise further in the coming months after certain government support measures to lower fuel and public-transport costs expired at the end of August. Headline inflation could even enter a double-digit range, the Bundesbank said.



If Germany has a recession and it looks like it will happen, then the rest of EU will have even more of a recession than Germany.


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