To fully grasp the extent of Germany’s economic and ideological catastrophe, one must, of course, put this figure into proper perspective. A recession—especially with a public spending ratio exceeding 50% and new borrowing of 4.5% annually—means that the private sector, i.e., the sector that produces the goods and services people actually demand, is shrinking by at least 4% this year. Good night, Germany.
Good Morning from Germany, where the economy may slip back into contraction in Q2. The latest leading indicators point that way. Deutsche Bank now expects GDP to fall by 0.2% in Q2 and has cut its full-year growth forecast in half to 0.5%. The consensus still sees a small 0.15% increase in Q2, but that estimate is dropping quickly.