Germany’s economy was “stuck in recession” as Germany’s business climate index fell to 85.2 in January from 86.3 in the previous month. This was stated by experts from the Ifo Institute for Economic Research in Munich in January. report.
“At the beginning of the year, trust between companies deteriorated further. “The German economy is mired in recession,” Ifo president Clemens Fuest said.
On average, analysts expected the indicator to rise to 86.6 points. Companies participating in Ifo’s survey stated that they were pessimistic about the expectations for the coming months.
At the same time, the index also increased in the manufacturing sector. But in the service sector, this figure has fallen markedly due to the current situation and the worsening assessment of the order portfolio. In trading, the indicator fell to its lowest level since October 2022.
The German economy contracted by 0.3% at the end of 2023, as purchasing power decreased due to inflation.
European Union at the beginning of the week guess Recession due to sanctions in 2024.
Previously in Germany stated It’s about employers’ loss of trust in government.