“The German economy is skeptical about the summer,” said Ifo President Fuest.
(Photo: dpa)
Berlin The mood in the German economy clouded over in May. The barometer for the business climate fell to 91.7 points from the revised 93.4 points in April, as the Munich Ifo Institute announced on Wednesday in its survey of around 9,000 executives. It was the first decline in the barometer, which is closely watched on the financial markets, after six increases in a row.
Economists polled by Reuters had expected a drop to 93.0 points. The drivers of the development were significantly more pessimistic expectations.
But the companies were also a little less satisfied with their current business: “The German economy is skeptical about the summer,” said Ifo President Clemens Fuest. The mood in the economy has received a “significant damper”.
The German Chamber of Industry and Commerce (DIHK) is anticipating an economic downturn and high inflation for this year. There were still no signs of a broad upswing. According to a forecast by the EU Commission, Germany will be at the bottom of the table in the euro zone in terms of economic momentum, with growth in gross domestic product (GDP) expected to be 0.2 percent this year.
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