German companies expect only a mild recession next year despite headwinds from the energy crisis, raw material shortages and a tepid global economy, a survey of major associations published by Reuters on Tuesday showed.
"The last quarter of 2022 and the start of 2023 are likely to be accompanied by a decline in economic activity," said Siegfried Russwurm, president of the Federation of German Industries . "However, we expect only a slight slump."
Russwurm warned that growth would remain subdued until 2024 as weak demand around the world hits Germany's export-dependent economy. "If the announced relaxations of China's zero-COVID policy are implemented, it would also be a positive signal for global supply chains," he added.
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