Europe’s largest economy will suffer amid the global downturn, Der Spiegel reports © Sean Gallup/Getty Images

Germany will be among the countries worst affected by the global economic slowdown next year, Der Spiegel magazine reported on Monday, citing data from the Organisation for Economic Cooperation and Development (OECD).

Europe’s largest economy could shrink by 0.7% in 2023, according to the OECD’s latest forecast, with the organization citing rising energy prices as the reason for the downturn.

The OECD’s forecast is higher than the 0.3% predicted by the Munich-based Ifo Institute for Economic Research earlier this month and the 0.2% suggested by analysts polled by Reuters in August.

Germany’s central bank, The Bundesbank, warned in August that a recession in Germany was “increasingly likely,” but did not provide any numbers.

“Declining economic output in the winter months has become much more likely,” the central bank said, as quoted by Reuters. According to the regulator, the inflation rate could reach 10% in autumn, which is around five times the European Central Bank’s 2% target.

In August, the inflation rate in Germany stood at 7.9% year-on-year, being pushed higher by soaring energy costs.

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