In the second quarter of 2022, Germany experienced little economic growth relative to the previous quarter due to stagnant consumption and exports, and a contraction of private investments. However, GDP is 1.7 percent higher than in the same quarter of 2021, when COVID was still holding back part of the economic activity. The economic recovery, the production bottlenecks of the Chinese manufacturing firms that were forced to stop during the pandemic, and the uncertainty generated by the Russian invasion of Ukraine have contributed to increasing inflation rates, 3.42 relative to the previous quarter and 7.64 relative to the previous year. Unemployment decreased slightly to 2.9 percent. The OECD economic outlook expects annual inflation to hit 8 percent in 2022-Q3 and to decrease to 4 percent towards the end of 2023. GDP is expected to grow at an annual rate of more than 4 percent throughout the year, and unemployment is expected to increase to 3.6 percent until the end of 2023.

October 2022