Germany: Recession clouds gather in Europe's largest economy
FirstpostGermany’s key future indicator, the IFO survey of business confidence, pointed down for the fourth month in a row as high inflation fed by astronomical natural gas prices undermines consumer pricing power and imposes heavy costs on businesses Frankfurt: Europe’s largest economy is sending recession signals. Germany’s key future indicator, the IFO survey of business confidence, pointed down for the fourth month in a row as high inflation fed by astronomical natural gas prices undermines consumer pricing power and imposes heavy costs on businesses. “High energy and commodity prices are weighing on demand and putting pressure on profit margins,” said Carsten Brzeski, chief eurozone economist at ING bank. Germany was heavily dependent on cheap natural gas from Russia, which has cut back supplies to a small fraction of what they were before the 24 February invasion of Ukraine.