After months of skyrocketing prices, Germany’s government told its citizens a recession is coming.
The financial downturn in Germany is primarily due to Russia’s gas shutdown, as the country wages war against Ukraine. Moscow has shut off access to crucial fossil fuel supplies, meaning that Germany and the rest of Europe are facing soaring gas prices.
“We are currently experiencing a serious energy crisis, which threatens to become an economic and social crisis,” Germany’s Economy Minister Robert Habeck said on Wednesday as he revealed the country’s official fall economic forecasts.
This comes as slowly cooling inflation still causes headaches for Americans. President Biden has yet to ring that alarm bell, and in fact, he told the country on Tuesday that there’s no reason to worry.
“I don’t think there will be a recession,” he told CNN in an interview. “If it is, it will be a very slight recession,” he added. “Look, it’s possible. I don’t anticipate it.”
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Article URL : https://www.businessinsider.com/germany-recession-biden-inflation-jobs-gas-prices-energy-layoffs-rent-2022-10