Germany's economy is contracting already and the natural gas squeeze means it'll keep shrinking all winter, central bank says

The natural gas crisis will cause the German economy to contract through the winter months, according to the Bundesbank.

The central bank said that economic activity may pull back this quarter and shrink in the fall and winter.

The economy is likely to shrink even if Germany avoids strict natural gas rationing.

It doesn't think there will be a 3.2% contraction in 2023.

Russia used to supply 40% of Europe's gas, but that has dropped to 20% since February when Putin launched his invasion of Ukraine.

Over the last few months, Russia's state-run gas company, Gazprom, has reduced natural gas deliveries via the Nord Stream 1 line.

On Friday, Putin shirked responsibility for the energy shortage in Europe, saying the European Union could turn on the newNord Stream 2 line for additional supplies.

"The bottom line is, if you have an urge, if it's hard for you, just push the button and everything will get going," Putin said, according to the news agency.