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Remarks by Ifo economist Klaus Wohlrabe

  • The latest drop in the Ifo index is worrying
  • Supply bottlenecks put companies under pressure
  • There is no stop sign
  • A clear majority of companies anticipate price increases
  • Expect GDP to stagnate in the fourth quarter

This is a damning assessment of the economic situation in Germany as winter approaches and it is one that will make policymakers rather uncomfortable.

The resurgence of COVID-19 cases over the past two months will do little to allay concerns about supply and capacity constraints (in fact, it will only exacerbate them) and it could see the German economy will face troubling problems at least in the next 2-3 months. .
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