Deutsche Bank: Recession in Germany is Inevitable in 2023
The German economy will not be able to avoid recession next year. However, this does not imply that the country will fall into a deep financial crisis.
The prediction was announced by the head of the largest German financial institution – Deutsche Bank, Christian Sewing, at the annual meeting of the International Monetary Fund and the World Bank in Washington.
We cannot avoid a recession in 2023. However, a recession does not mean depression. The main thing is for Germany to get out of this recession as quickly as possible – he said.
How severe the economic downturn will be, Sewing said, will also depend on how the bailouts work. Germany, he believes, has a strong economy with solid medium-sized companies. But in the next twelve months, the number of bankruptcies will increase significantly. “In the conditions of a recession, this is true,” said the head of Deutsche Bank.
“I don’t think we have any signs of a financial crisis,” Zeving continued. The reliability of German and European banks is absolute. But now, first of all, it is important to bring inflation under control. Therefore, it is also correct that central banks are currently raising interest rates, – the economist summarized. “Inflation is, after all, poison for the consumer,” concluded the head of the German financial institution.