Due to the fall of business activity and slowing down the growth of the economy, Germany was on the verge of recession, writes Deutsche Welle.
According to the Institute of Economic Research by IFO, the business climate index in Germany in July dropped to 88.6 points. This indicator is considered a “barometer” of the German economy. And now it shows the lowest numbers in recent years.
Deterioration of the “business mood” was recorded in the industrial sector, service sector, trade and construction industry.
July 20, the International Monetary Fund sharply reduced the forecast of the growth of the economy of Germany. According to the results of 2022, gross domestic product should increase by 1.2% instead of previously expected 2% in annual calculus. For comparison – in the postpandemium of 2021, GDP added 2.9%.