Bundesbank revised down progress projection for Germany’s GDP in 2022 and 2023, and upgraded inflation projection for 2022, 2023, and 2024.
2022 GDP progress is slashed from 4.2% to only 1.9%. 2023 progress was minimize from 3.2% to 2.4%. However 2024 progress was raised from 0.9% to 1.8%.
2022 HICP inflation forecast was raised from 3.6% to 7.1%. 2023 HICP forecast was raised from 2.25% to 4.5%. 2024 HICP forecast was raised from 2.2% to 2.6%.
President Joachim Nagel stated: “Inflation this yr shall be even stronger than it was in the beginning of the Eighties. Worth pressures have even intensified once more not too long ago, which isn’t totally mirrored within the current projections. If this improvement is assumed to proceed, the annual common HICP charge for 2022 may very well be significantly above 7%”.
Euro space inflation charges gained’t fall by themselves,” Nagel added. “Financial coverage known as upon to scale back inflation via resolute motion.”
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