Ifo economist: German economy heading towards stagnation in Q2 | Forexlive

• German economy is treading water
• Strong collapse in expectations in industry is striking
• Industry export expectations have fallen markedly
• Rate hikes have appeared to dampen demand

As evident from the PMI data, the manufacturing sector – which Germany relies mostly upon – is facing a notable downturn with the saving grace for the economy being a more upbeat services sector. But with tighter financial conditions and still high inflation, the outlook remains rather daunting for now.