In the monthly report, Bundesbank said “significantly weaker recovery expected in the second quarter”. The effects of Russia’s attack on Ukraine are “likely to have a noticeable impact on economic activity in Germany from March”. Supply chain problems are likely to “intensify again”, and energy prices have “risen massively”.
“From today’s perspective, the strong recovery planned for the second quarter is likely to be significantly weaker”. Also, the extent of the effects of war is “very uncertain and depends on how events unfold”.
