Commerzbank: Germany’s economic weakness at the end of last year could extend into 2023

Ralph Solveen, senior economist at Commerzbank, said Germany’s fourth-quarter economic downturn was steeper than initially estimated, suggesting that rising energy prices were still severe despite the government’s extensive aid measures. hit economic activity.

Looking ahead, pressure from high energy costs should gradually ease as prices moderate, but worsening financing conditions due to higher interest rates could have an increasing impact, especially in the construction sector. As a result, the economy is likely to remain weak throughout the year. The German economy is expected to contract by 0.5% in 2023.