Balanced News: Germany predicted to be the only major European economy to contract this year as recession lingers

Germany is expected to be the only major European economy to experience an economic contraction in 2023, according to the European Commission. The country’s economic activity is predicted to fall by 0.4% this year, lower than previous estimates. The German economy has been impacted by Russia’s invasion of Ukraine and a decline in manufacturing activity. However, some economists argue that Germany’s current situation is different from previous downturns due to factors such as record employment and a strong fiscal position. Overall, there is a general slowdown in economic growth across the EU, and high inflation remains a challenge in the bloc.