German Chancellor Olaf Scholz is confident about the resilience of Europe's largest economy, saying the worst fears had failed to transpire and 2023 was kicking off on solid footing.
"All the bad news from A for job losses to Z for the collapse of German industry did not materialize," Scholz said Tuesday in Berlin at an event held by the Association of German Chambers of Industry and Commerce (DIHK).
The severe recession predicted by some never happened and the economy even grew, albeit modestly, Scholz said.
Energy shortages amid the Europe's geopolitical clash with Russia had also been avoided, he said, pointing out Berlin's efforts to secure new sources and build up liquefied natural gas (LNG) infrastructure.
The German government expects gross domestic product (GDP) to grow by 0.2% in 2023, sources have told dpa ahead of the publication of an updated forecast on Wednesday.
In mid-October, the German government had significantly lowered its forecast, mainly due to the energy price crisis. At that time, it expected the economy to shrink by 0.4% in 2023. Last year, Germany grew by 1.9% according to preliminary figures from the Federal Statistical Office.
Scholz also addressed the shortage of skilled workers in the economy.
He expressed confidence that "modern rules" for more immigration could also succeed in overcoming this challenge.
