The business climate in Germany worsened "significantly" in July, according to a key survey published Monday, as an energy crisis pushed Europe's largest economy closer to a recession this year.The business climate in Germany worsened “significantly” in July, according to a key survey published Monday, as an energy crisis pushed Europe’s largest economy closer to a recession this year.
The pessimistic figures suggest that “Germany is on the cusp of a recession”, said Ifo president, Clemens Fuest. The fall was particularly steep in the manufacturing sector, where “pessimism regarding the coming months reached its highest level since April 2020”, Fuest said. The strong headwinds and weak data meant Germany’s economy could have seen a contraction “already in the second quarter”, Brzeski said.