(Adds details)
BERLIN, Feb 13 (Reuters) - The German economy will grow
slightly this year, the European Commission said Monday,
revising upwards its previous forecast for a 0.6% contraction.
In its winter forecasts, the European Commision envisages
0.2% GDP growth for Europe's biggest economy in 2023, more than
it expected in autumn due to the easing of energy prices and
policy support to households and firms.
German gross domestic product decreased 0.2% quarter on
quarter in adjusted terms in the fourth quarter.
Despite a recent improvement in confidence, the economy is
expected to suffer another mild decline in early 2023, as energy
prices for households are still increasing and government
support for January and February will only be disbursed in
March, the Commission said.
Growth is expected to rebound to 1.3% in 2024, according to
the Commission's forecasts.
German consumer prices, harmonised to compare with other
European Union countries, peaked at 11.6% in October, driven by
the surge in energy prices and rising input costs. Since then,
consumer prices have eased somewhat.
In 2023, the pass-through of elevated wholesale energy price
growth is expected to be mitigated by the caps on gas and
electricity prices.
However, still rising producer costs are set to keep
inflation high, at a projected 6.3% in 2023, the Commission
said. In 2024, German inflation is expected to de decline to
2.4%.
(Reporting by Maria Martinez, editing by Rachel More, Kirsten
Donovan)
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.