German economy ‘will shrink this year as part of eurozone slowdown’

European Commission forecasts 0.4% contraction for country amid high inflation

Germany's economy will shrink this year as part of a wider eurozone slowdown triggered by higher inflation and the dampening impact of rising interest rates, the European Commission has said.

In its interim quarterly update, the commission said Europe's powerhouse economy would be the worst-affected major country in the 20-nation single currency bloc and would record a 0.4% contraction in 2023.