Economic Research Institute: The German economy is stuck in a crisis, no improvement is expected in the third quarter.

The Director of the Survey Center of the Economic Research Institute (Ifo), Klaus Wohlrabe, one of Germany's leading economic think tanks, stated that they do not expect a positive development in the German economy in the third quarter of this year, saying "The German economy is stuck in a crisis."

"ECONOMIC PRODUCTION HAS STAGNATED"

In a written statement by Ifo, Wohlrabe's evaluation of the 0.1% contraction in the German economy in the second quarter of this year was mentioned. Wohlrabe, pointing out that economic recovery, especially in the industry, will not take place for a long time, commented, "Energy-intensive industries have been able to increase their production to some extent since the beginning of the year. However, economic production has stagnated in the rest of the production sector."

"GERMAN ECONOMY IS STUCK IN A CRISIS"

Wohlrabe stated that the decline in accumulated orders continues and new orders are insufficient, using the expression "The German economy is stuck in a crisis. It is not expected to see much improvement in the third quarter of 2024." Wohlrabe also stated that the recovery in private consumption is also sluggish, saying, "The business environment for service providers and the retail sector deteriorated further in July. As a result, it is likely that private consumption will only increase slightly in the third quarter."

On the other hand, in the evaluation made by ING regarding the German economy, it was pointed out that Germany is the country lagging behind in growth in the Eurozone. The evaluation stated that there is no easy way out of the stagnation the country is in and used the expression "However, a recovery is still possible in the second half of the year, but it is unlikely to be strong." According to the preliminary data on gross domestic product for the second quarter announced by the German Federal Statistical Office, the German economy contracted by 0.1% on a quarterly basis in the second quarter.