Berlin [Germany], April 28: The German government on Wednesday lowered its gross domestic product (GDP) growth forecast for 2022 to 2.2 percent due to the Russia-Ukraine conflict.
In January, it was expecting the country's economy to grow by 3.6 percent.
"The risks for the economy are clear," said Minister for Economic Affairs and Climate Action Robert Habeck. After two years of the COVID-19 pandemic, the Russia-Ukraine conflict was "adding a new burden."
The sharp rise in oil, coal and gas prices in the wake of the conflict was also driving up consumer prices. The German government expects an inflation rate of 6.1 percent for 2022.
"Such rates have previously only been observed during the oil crisis or shortly after reunification," a statement by the Ministry for Economic Affairs and Climate Action (BMWK) said. The German government expects the inflation rate to be significantly lower again at 2.8 percent in 2023.
Source: Xinhua
