In addition to its direct effects, the rise in energy prices also has an indirect impact on consumer prices – by passing on
energy costs to all other goods and services. An inflation rate of 6.5 percent is forecast for 2023. As energy prices fall
from 2024, inflation will slow down again (2027: 2.4 percent) but remain above the ECB target of 2 percent. Despite extensive
fiscal policy measures to cushion the impact of inflation, the budget deficit ratio will likely stabilise at around 1.3 percent
of nominal GDP in the medium term. Government debt is expected to increase by 34½ billion € in the period 2023-2027. The debt
ratio falls from 77.1 percent (2022) to just under 68 percent (2027) due to the strong expansion of nominal GDP.