Will the recession fail? Five reasons why



Shopping street in Cologne

Private consumption – an important pillar of the German economy – has so far remained quite stable because households can fall back on savings.


(Photo: dpa)

Berlin In a week, Federal Minister of Economics Robert Habeck (Greens) should present the federal government’s new annual economic report. In mid-December, his company drew up a first draft for this – with a rather gloomy outlook for the economic situation.

In the meantime, the ministries have continued to work on the report. The current draft version, which is available to the Handelsblatt, reads quite positively. “Overall has Germany the economic consequences [des Kriegs] coped well so far,” it says. Despite supply chain bottlenecks, sanctions against Russia and the freeze on Russian gas supplies, the German economy is proving to be “resilient”.

That doesn’t sound like the recession that almost all experts had predicted so far. On the contrary, now the voices of those who say that the economy may not experience a recession at all are growing. There are five reasons for this, which are listed below.

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