German Finance Ministry sees subdued economic activity over winter

Reuters reports that Germany’s finance ministry expects activity in Europe’s biggest economy to remain subdued during the fourth quarter of this year and first quarter of next and sees declining inflation rates during 2023, it said in its monthly report.

Key notes

“Overall, economic developments are expected to remain subdued in the winter half (year),” said the report, published on Thursday.

“However, relatively stable labour market developments and the government’s relief measures ... are providing supportive impetus,” it said, adding that current estimates pointed to declining inflation rates, albeit at a raised level, next year.

“If we succeed in exiting these crisis measures, we will see a significant reduction in overall debt at the end of this decade and the start of the next,” he said.