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Growth in Germany to fall to 1.5%, labour minister warns


© Reuters. FILEPHOTO: A group of people work at Bad Muenstereifel in South-West Germany. This photo was taken March 29, 2022. REUTERS/Thilo Schmuelgen

BERLIN, (Reuters) – Germany could see a decline in economic growth to 1.4%-1.5% from 2.7% this year. The average German worker on reduced-hour layoffs would be around 590,000. This is according to Hubertus Heil of Labour Ministry.

Heil declared that we will keep growing. Heil added that “but this is all subject to condition that the war doesn’t spread further and that there remains an energy supply.”

Heil indicated that the government would continue to provide support and assistance for job protection in case of a worsening situation.

A document by Reuters that was seen on Friday shows that Germany intends to provide more than 100 million euros (or $108.8 billion), in aid to Ukraine’s companies suffering from fallout.

Christian Lindner, Finance Minister, plans to also submit to parliament a supplementary budget in the coming weeks. This will reflect the likely economic effects of war and would probably be at least 24 million euros.