IFO’s Economist: Likelihood that German economy will shrink again in Q2 has increased

Following the release of the German IFO Business Survey, the institute’s Economist Klaus Wohlrabe said that the “likelihood that German economy will shrink again in Q2 has increased.”

Additional quotes

Storm clouds are forming for the German economy.

Weak demand for industry, order backlog falling.

Industry export expectations are noticeably down, global rate hikes dampen demand.

Share of companies that want to raise prices has decreased further in June.

Likelihood that german economy will shrink again in Q2 has increased.

Market reaction

EUR/USD was last seen trading at 1.0891, modestly flat on the day.