Economists predict a contraction of the Eurozone economy in 2023.

The expected recession in Germany next year will lead to a general decline in the Eurozone economy by 0.1%, writes Bloomberg. It is noted that the block’s production volume will fall by 0.1% in 2023, although a month ago, a growth of 0.3% was forecasted. Germany, the eurozone’s largest economy, will contract by 0.5%, while France, Italy, and Spain will likely show growth. “The German economy will shrink for at least three quarters in a row until the spring of 2023,” said Dennis Huhzermeier, Senior Economist at the Handelsblatt Research Institute. This will be an atypical recession, Huhzermeier said, because demand for labor will remain strong, and manufacturers will have a large cushion of orders to fill. Economists also revised their price growth forecasts for next year upwards. Eurozone inflation is now estimated at an average of 5.5%, up from 5% in the previous survey.