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German Economy Braces for Prolonged Stagnation Despite Fiscal Stimulus
The Ifo index increased in October on the back of improving expectations, while the current assessment worsened once again

The Ifo index increased in October on the back of improving expectations, while the current assessment worsened once again

Even without ground control calling, German optimism has been brought down by a mix of US tariffs, a stronger euro and the political inability to combine fiscal stimulus with growth-enhancing reforms

A full reversal of previous US front-loading effects has pushed the German economy back into recessionary territory, and it looks increasingly unlikely that any substantial recovery will materialise before 2026

While Germany is still digesting and debating Sunday's election results, the latest Ifo index reading suggests that the economy remains stuck in stagnation.





























