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Germany is expected to enter recession in the third quarter of 2022. This was announced by the German Ministry of Economy.

The forecast is for three consecutive quarters of negative growth.

The agency notes that the economic situation in the country has "deteriorated significantly against the background of the cessation of gas supplies from Russia", which causes energy-intensive industries to "disproportionately reduce" their production.

Thousands protested in Berlin against high energy prices and the rising cost of living

The ministry states that the recession "is unlikely to leave traces on the labor market".

It is noted that the market "proves to be stable in the crisis" due to a shortage of skilled workers.

The department added that the increase in the minimum wage supports low-income households, and the recent rise in unemployment rates is "almost entirely" caused by the influx of refugees from Ukraine.

The German central bank's (Bundesbank) monthly report for September said there are increasing signs that the German economy will slip into recession in the coming quarters. 

Germany posted its first monthly trade deficit since 1991 in May as a result of higher import prices.

recession