BERLIN, Feb 9 (Reuters) - The German economy will
stagnate this year, the DIHK Chambers of Commerce and Industry
said on Thursday, revising upwards its forecast for Europe's
biggest economy which it had previously expected to contract by
3.0%.
Consumer prices exploded last year due to soaring gas prices
caused by the war in Ukraine and supply bottlenecks and the
government and economists saw no way to avoid recession.
However, a 200-billion euro relief package to shield
consumers from surging energy prices, a mild winter and a
readiness to save energy have changed the picture.
"The good news is that the German economy was able to avert
a crash that threatened," said DIHK Managing Director Martin
Wansleben in a presentation of the new forecasts.
"Instead of a deep recession, we are more likely to see a
sideways movement this year and a red zero at the bottom line,"
he said.
Firms are also more optimistic about their outlook, a survey
of 27,000 companies published by the DIHK showed. While in the
autumn only 8% of those surveyed were optimistic about the
business outlook in the next 12 months, the share has risen to
16% at the start of the year.
On average across all sectors, three of four companies still
view high energy and raw materials prices as a business risk,
the survey showed. In the industrial sector, this figure remains
very high at 85%.
(Reporting by Maria Martinez
Editing by Madeline Chambers)
