Deutsche Bank CEO: Germany Heading for Recession

Date: 07 September 2022 - 21:20

News ID: ۱۰۶۶۶۸

BERLIN (Bloomberg) --

Europe’s largest economy is set for contraction on the back of soaring inflation, energy bottlenecks and the disruption to global supply chains, Deutsche Bank AG Chief Executive Officer Christian Sewing warned.

“We will no longer be able to avert a recession in Germany,” Sewing said during a speech in Frankfurt on Wednesday. “We believe that our economy is resilient enough to cope well with this recession -- provided the central banks act quickly and decisively now.”

The crisis triggered by Russia-Ukraine war hit a new peak when Gazprom PJSC announced this month that it is suspending gas flows through its biggest pipeline to Europe indefinitely. The European Union is racing to come up with ideas to keep the gas crisis from turning into an economic meltdown, and energy ministers are set for an emergency meeting in Brussels on Friday.

“The longer inflation remains high, the greater the strain and the higher the potential for social conflict,” Sewing said.