Germany Seen Dragging Euro Area Into Contraction With Russia Gas Reliance – Bloomberg

The

euro-area economy is expected to shrink next year as it battles surging energy costs and the risk of shortages following Russias invasion of Ukraine.

Output in the currency bloc will drop by 0.1% in 2023, according to economists polled by Bloomberg who were still predicting growth of 0.3% a month ago. Germany, the euro areas largest economy, is seen contracting by 0.5% while France, Italy and Spain are expected to expand.