BERLIN, Dec 27 Reuters German companies expect only a mild recession next year despite headwinds from the energy crisis, raw material shortages and a tepid global economy, a survey of major associations published by Reuters on Tuesday showed.

The last quarter of 2022 and the start of 2023 are likely to be accompanied by a decline in economic activity, said Siegfried Russwurm, president of the Federation of German Industries BDI. However, we expect only a slight slump.

There have been growing signs that the German economy could stave off the worst of an economic downturn triggered by a plunge in energy supply from Russia after the Ukraine invasion.

Inflation slowed slightly to 11.3 in November from a high of 11.6 the month prior as energy prices eased. The German government has predicted the economy will grow by 1.4 this year and contract by 0.4 next year.

Russwurm warned that growth would remain subdued until 2024 as weak demand around the world hits Germany39;s exportdependent economy.

The Association of German Chambers of Industry and Commerce DIHK said there were many indications that supply chain disruptions were gradually easing.

Freight rates for container prices are approaching longterm normal values again, and the congestion outside international ports is slowly easing, said DIHK President Peter Adrian.

If the announced relaxations of China39;s zeroCOVID policy are implemented, it would also be a positive signal for global supply chains, he added….