The German economy, Europe’s biggest, will shrink this year and inflation will stay above 2% at least through 2025, the Bundesbank said on Friday in a biannual update of its projections.
The new forecasts came just a day after the European Central Bank lifted interest rates for the eighth straight time and promised even more tightening, as inflation pressures keep exceeding expectations, despite a recession over the winter.
Read More : Bundesbank Anticipates Economic Contraction in Germany for 2023