German economic crisis worsens

The mood in German business is pessimistic, with business confidence at a low. The IFO Institute’s survey indicates a fifth consecutive decline in business sentiment from 86.6 to 85.4. This downturn is especially concerning for the pivotal industrial sector. Economists like Jeppe Juul Borre see no sign of impending recovery, and the current economic malaise is attributed to high inflation, interest rate increases, and overarching economic uncertainty. This sluggishness caused a slight contraction in Germany’s economy in the latest quarter and is affecting Danish businesses, which are seeing fewer orders. Denmark’s annual exports to Germany amount to 230 billion DKK. The IFO index, based on a monthly survey of 9,000 German companies, helps track economic trends over time.