German economy continues to struggle following recession in Q2
The world’s fourth largest economy took another hit to its’ business confidence in August following a winter recession.
The ifo Business Climate Index dropped to 85.7 points in August from 87.4 points in July, marking the fourth consecutive fall. This comes as companies in the country continue to be pessimistic about economic outlook amidst fears that more economic downturn is in store for Europe’s largest economy.
Germany’s economy stagnated in the second quarter, with the country’s Federal Statistical Office (Destatis) showing zero growth from April to June compared to the previous quarter.
Germany’s inflation rate slowed down to 6.2% thanks to falling energy prices, but still remain well above the target 2% by the European Central Bank. Germany’s economic recovery has been slower compared to other major world economies, with only Italy posting worse economic results in the second quarter at (-0.3%).
By comparison, the U.S. recorded (.6%) growth while the Eurozone grew (.3%), according to destatis. In comparison to the previous year,Germany was -0.1%, below the rest of the EU at 0.5%.
