Germany economy ministry slashes GDP forecast over Ukraine war, high energy prices

Germany's economy ministry on Wednesday cut its economic growth forecast for 2022 to 2.2% from its late January prediction of 3.6% growth this year as Russia's invasion of Ukraine, sanctions and high energy prices take toll on output. The ministry expects the economy to grow by 2.5% in 2023, up from the 2.3% previously predicted.

The government sees an inflation rate of 6.1% in 2022 and 2.8% next year, as rising energy prices are driving consumer prices in Europe's biggest economy, the ministry added.