EU downgrades growth forecast, cites contracting German economy

The bloc’s biggest economy had been expected to grow this year, but now looks set to decline by 0.4 per cent

The German economy will contract this year. Picture: Bloomberg

The European Commission has cut its outlook for the euro-area economy, predicting it will be dragged down this year by a contraction in Germany.

Output in the 20-nation currency bloc will rise by 0.8 per cent in 2023 compared with an earlier forecast for 1.1 per cent growth, according to updated projections published today by the European Union’s executive arm. Next year’s outlook was lowered by the same amount, to 1.3 per cent.

The region’s ...