Newspaper: Germany faces a bleak future and a wave of bankruptcies and unemployment in light of high inflation and gas shortages

The German newspaper Handelsblatt confirmed that soaring prices and energy shortages will lead to a recession in the German economy and cause a wave of bankruptcies and unemployment as a result of sanctions against Russia.

I wrote newspaper Referring to the data of the country’s economic research institutes, in 2023 Germany’s GDP will decrease by 0.7-1.4%.

And experts from the Institute for World Economics (IME) said: “The German economy is in recession … Soaring energy prices are putting pressure on the economy and pushing it into recession.”

For his part, the head of the German company Uniper urged to prepare for the “worst-case scenario” with gas, “a difficult situation can only affect companies … Business prospects have become more gloomy.”

The newspaper points out that in August the number of bankruptcies increased by 26 percent compared to the same period last year and amounted to 718 cases, and in September, analysts expect this number to increase by a quarter.

“The number of bankruptcies was low for a long time, but now it’s getting worse,” said economist Steven Mueller.

Western countries, including Germany, are facing soaring energy prices and inflation as a result of its sanctions against Russia and its policy of ditching Russian fuel.

Due to rising fuel prices, especially gas, industry in the West has largely lost its competitive advantage, which also affected other sectors of the economy.

Source: RIA Novosti

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