German economy to contract by 0.2 pct next year: GCEE

BERLIN, Nov. 9 (Xinhua) -- The German economy is expected to slide into recession in 2023, with the country's gross domestic product (GDP) likely to fall 0.2 percent due to the energy crisis, the German Council of Economic Experts (GCEE) said Wednesday.

At the same time, inflation in Europe's largest economy is expected to fall from 8 percent this year to 7.4 percent next year.

"Should a shortage of natural gas occur in Germany, a deep recession and even higher inflation can be expected," the council's annual report said.

Driven by soaring energy prices, inflation in Germany reached 10.4 percent in October, according to preliminary figures by the Federal Statistical Office (Destatis).

To cushion inflationary pressure on consumers and businesses, the government first introduced relief measures worth 95 billion euros (95 billion U.S. dollars). Then an even bigger package worth 200 billion euros was introduced to cap electricity and gas prices. (1 euro = 1 U.S. dollar)