German govt sees another recession this year

FRANKFURT, Oct 06 (AFP): The German government has slashed its forecast and now expects Europe's largest economy to shrink for a second year running as hopes for a consumption-driven recovery fizzle out, media reported Sunday.
The economy ministry sees the German economy contracting by 0.2 per cent this year, a dramatic downgrade from its prior estimate of 0.3-per cent growth, according to the Sueddeutsche newspaper.
Economy Minister Robert Habeck will officially unveil the latest forecasts on Wednesday.
Germany was the only major advanced economy to contract in 2023, hit hard by an industrial slowdown, cooling export demand and surging energy prices following Russia's invasion of Ukraine.
Expectations that easing inflation and the first interest rate cuts by the European Central Bank would drive a recovery this year have however seemed increasingly out of reach in recent months, as demand at home and abroad remained weak.
Germany's leading economic institutes have also recently downgraded their forecasts.