Recession warning from Bundesbank

In its monthly report, the German Central Bank Bundesbank predicted that the ban on energy imports from Russia will trigger a sharp rise in prices and the deepest recession in decades will be seen.

In the statement, it was stated that the economic loss may be lower next year with the gradual compensation of energy deliveries from Russia, although the activity in 2024 may remain below the previous forecasts. In the statement, the statement "In the severe crisis scenario, real GDP will shrink by approximately 2 percent compared to 2021 in the current year."

According to the Bundesbank, the greatest damage will come from rising energy costs.

In a report last month, the Bundesbank stated that the Russia-Ukraine war slowed down the economic recovery in Germany and warned that inflation in the country would increase in the coming months.