Ifo boss Clemens Fuest believes that the risk of a recession in Germany has been averted because of the economical use of gas in winter. “According to current data, there will be no recession in the sense of a significant contraction in economic output,” said the President of the Munich Economic Research Institute Augsburg General. The main reason is that, contrary to the fears of many experts, there was no gas shortage. “We were lucky with the temperatures this winter, and the new LNG terminals are helping to ensure that gas supplies and energy prices are doing better than feared.” Unlike the federal government, however, the Ifo Institute does not expect any growth for the current year. “We expect a slight contraction this year, a red zero,” said Fuest. “That’s not great, because we’re coming from an extremely low economic level after the Corona crisis.” At the end of January, the German Economics Minister Robert Habeck (Greens) had forecast a slight economic increase of 0.2 percent.
Ifo Institute – danger of recession averted for the time being – Economy
