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| German economy continues to be under pressure. (Source: Getty Images) |
According to Carsten Brzeski, head of global macro analysis at ING, the European Central Bank's (ECB) tightening of monetary policy, the reserve cycle and new geopolitical uncertainties that have not yet reversed will continue to hamper the German economy.
Europe's largest economy will remain in a state of contraction and stagnation not only this year but also next year.
The German economy's decline in the third quarter was in line with Commerzbank's forecast that the country's economy would decline again in the second half of the year.
Consumption is unlikely to recover as optimists hope, according to Commerzbank chief economist Joerg Kraemer.
Inflation in Germany in October 2023 fell to its lowest level since August 2021, partly indicating that overall inflation in the Eurozone has cooled significantly.
German inflation fell to 3.0% in October 2023, the Federal Statistics Office said. German consumer prices rose 4.3% year-on-year in September 2023.
Core inflation, which excludes volatile food and energy prices, eased to 4.3% in October 2023 from 4.6% in the previous month.
Commerzbank economist Ralph Solveen predicts that core German inflation will remain significantly higher than the ECB's wishes next year.
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