German economic advisers slash 2022 growth forecast to 1.8%

The German government’s panel of independent economic advisers has slashed its 2022 growth forecast for Europe’s biggest economy in light of Russia’s invasion of Ukraine and concern over energy supplies and prices

BERLIN -- The German government's panel of independent economic advisers on Wednesday slashed its 2022 growth forecast for Europe's biggest economy in light of Russia's invasion of Ukraine and concern over energy supplies and prices.

The group forecast that Germany's gross domestic product will expand by only 1.8% this year, compared with the 4.6% it predicted in November. It said the economy won't return to its pre-pandemic level until the third quarter.

Last year, the country's GDP grew by 2.9%; in the final quarter of 2021, it shrank by 0.3% compared with the previous three-month period.

“The high dependence on Russian energy supplies entails a considerable risk of lower economic output and even a recession with significantly higher inflation rates,” the panel said.