Germany’s ZEW: A recession is becoming more and more likely

Key takeaways

A recession is becoming more and more likely.

The war in Ukraine and the sanctions against Russia are significantly dampening the economic outlook for Germany.

Collapsing economic expectations are accompanied by an extreme rise in inflation expectations.

Experts, therefore, expect stagflation in the coming months.

Worsened outlook affects practically all sectors of the German economy, but especially the energy-intensive sectors and the financial sector.