“High fog” a government report in Germany concludes with “bleak” economic prospects

A German government report says that "the prospects for further economic growth are currently remarkably bleak," adding that they are characterized by "a high degree of uncertainty."

The German Finance Ministry said in its monthly report for the month of August that the outlook for Europe's largest economy is bleak, with high energy prices and supply chain disruptions, according to Reuters.

The German economy stagnated in the second quarter of the year due to the repercussions of the Russian attack on Ukraine, high energy prices, the pandemic and supply disruptions.

"Expectations for further (economic) growth are currently noticeably bleak," the ministry said in the report, which was published on Friday, adding that it was characterized by a "high degree of uncertainty."

"The significant reduction in gas supplies from Russia and the ongoing large increases in the prices of energy and other commodities, in addition to supply chain disruptions that have lasted longer than expected, and also regarding China's zero-Covid policy, are all things that severely affect the growth of the economy," she continued.

The ministry added that the government will present its updated economic forecast on October 12.