(Bloomberg) -- Investor confidence in Germany’s economy remained near a record low as a growing number of analysts say a recession triggered by soaring energy prices has already begun.

The ZEW institute’s gauge of expectations inched up to -59.2 in October from -61.9 the previous month, better than the slump economists had estimated. But an index of current conditions sank to the lowest since the pandemic began.

“Overall, the economic outlook has deteriorated again,” ZEW President Achim Wambach said Tuesday in a statement.

Double-digit inflation and the prospect of winter energy shortages are battering Europe’s largest economy, which is expected to drag the whole euro zone into a recession next year. As Russia cuts natural gas supplies, some manufacturers have slowed production or closed factories, while households face surging heating bills.

Gross domestic product is set to shrink by 0.4% in 2023, according to Germany’s Economy Ministry. Adding to headwinds are interest-rate increases by the European Central Bank, which is likely to deliver a second straight three-quarter-point hike next week.

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