High Frequency Indicators Point Towards German Contraction 

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The German economy has been underperforming 

We recently discussed in a blog post how the German economy has become the “sick man of Europe” again. Growth has been stalling since about early 2018, the recovery from the COVID-19 pandemic has been anemic, and in late 2022 Germany fell into a technical recession. 

The reasons for Germany’s struggles are multifaceted. A skilled labor shortage, the massive energy price shock following the start of the war in Ukraine, the falling demand or German exports, declining household consumption, and a lack of government spending to make up for falling demand all contribute

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