IFO

Despite ominous forecasts, the German stock market is also participating unhindered in the rally that most markets saw in October. The DAX index rose 8.4 per cent last month.  This is striking, as virtually all indicators point to a very bleak outlook for the eurozone’s largest economy. Is the German economic model faltering?

Economic growth in the EU will be “severely affected” by the disruption triggered by Russia’s invasion of Ukraine, the European Commission has warned. Investor confidence in Germany, Europe’s largest economy, is falling sharply. The multiplicity of problematic macro factors is large and uncertainty about raw materials dominates. “In Europe it will be touch and go.”