• 4 minutes Energy Armageddon
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 10 minutes Russia Says Europe Will Struggle To Replace Its Oil Products
  • 5 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 hours Reality catching up with EV forecasts
  • 7 days "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 1 day 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 6 days A Somewhat Realistic View of the Near Future for Electric Vehicles Worldwide
  • 12 days The Federal Reserve and Money...Aspects which are not widely known

The Energy Crisis Is Pushing Germany Into A Recession

Signs are mounting that the German economy is slipping into recession, which will deepen as we head into the winter months amid the ongoing natural gas and energy crisis, Bundesbank, the central bank of Germany, said in its monthly report on Monday.  

Economists at Bundesbank now expect a broad-based and longer-lasting decline in German economic activity.

Germany's real gross domestic product (GDP) is expected to shrink somewhat in the third quarter and decline significantly in the next quarter and winter months, Bundesbank said.

The gas supply situation will continue to be very tight, the central bank said.

ADVERTISEMENT

Early this month, Russia indefinitely shut down Nord Stream, the key gas export route to Germany, and blamed Western sanctions for this situation.  

According to Bundesbank, mandatory rationing of gas could be avoided—barely—thanks to high volumes of deliveries of gas from other sources.

"However, this requires a further, significant reduction in gas consumption - especially in households," Germany's central bank said.

ADVERTISEMENT

The high energy prices have hit energy-intensive sectors, with output in the chemicals industry sharply down. Consumer goods manufacturing has also slumped, especially pharmaceuticals and furniture. Industrial order intake continued to decline in July due to falling domestic demand, Bundesbank noted.

Germany's inflation rate is expected to move up into the double digits over the next few months, the bank said.

If the weather is cold, gas shortages would be even worse. Germany could see severe nationwide gas shortages, which it will not be able to predict more than two weeks in advance, Klaus Müller, the president of Germany's Federal Network Agency, Bundesnetzagentur, said last week.

Meanwhile, the German government is in talks with the biggest German importer of natural gas, Uniper, to potentially lift its 30% stake in the company to majority participation or to nationalize the firm.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

ADVERTISEMENT


ADVERTISEMENT


Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News