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Germany on brink of recession

by LLB Reporter
25th Jul 22 9:54 am

Germany is hurtling towards a recession, thanks to soaring energy price and fears of a gas shortage driving down confidence, a new survey shows.

Research institute IFO has reported that German business morale fell this month to the lowest level in over two years.

Companies fear that business will significantly worsen in the coming months, with manufacturing firms particularly gloomy.

IFO’s business climate index fell to 88.6, from June’s 92.2, a bigger drop than expected, putting Europe’s largest on the threshold of recession.

It’s the worst reading since June 2020, during the first Covid-19 lockdowns, when the global economy fell into recession.

Ifo President Clemens Fuest said: “Germany is on the brink of a recession.High energy prices and the threat of gas shortages are weighing on the economy. Companies are expecting significantly worse business activity in the coming months.”

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