Germany's expectations for economic growth are collapsing
The German economy is at the epicenter of the Russian energy shock, and expectations for growth are collapsing.
Why it matters: With the world's fourth-largest gross domestic product, Germany's trade-dependent economy could be poised for a painful period of transition as the cornerstones of its model — free-flowing energy from Russia and strong demand from China — seem to be crumbling more every day.
Driving the news: A closely watched index of economic sentiment in Germany produced by ZEW (Leibniz Centre for European Economic Research) dropped by the largest amount on record in March.
- "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," said Achim Wambach, president of ZEW.