Germany will not fall into recession, Scholz tells Bloomberg TV

Germany will not fall into recession, Scholz tells Bloomberg TV

BERLIN (Reuters) -German Chancellor Olaf Scholz said on Tuesday he was convinced Europe‘s largest economy would not fall into a recession despite soaring energy and food prices in the wake of Russia’s invasion of Ukraine.

German economic output stagnated in the final quarter of 2022 but grew 1.9% over the full year, data showed last week, coming in slightly higher than expectations.

“Im absolutely convinced that this will not happen that we are going into a recession,” he said in an interview with Bloomberg TV. “We showed that we are able to react to a very difficult situation.”

Scholz also said he was optimistic Berlin could reach an agreement with Washington to avoid a trade war over new U.S. green subsidies.

“We are now discussing with the government and with all the political people in the United States that it should not happen that local content regulations are against European partners,” he said. “And Im quite optimistic that we will reach an agreement in this field.”

(Reporting by Sarah Marsh and Matthias Williams, Editing by William Maclean)

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