Eurozone investor mood darkens due to 'problem child' Germany

[Eldorado]

Investors got more gloomy on prospects for the euro zone economy in June, dragged down by negative expectations for Germany, Europe's biggest economy, a survey showed on Monday.

"A look at the Sentix data of the largest economy then clearly shows that the cause of the misery in Euroland is probably linked to the weakness of the German economy," it said. "The biggest problem child in the Eurozone remains Germany."

The German economy fell into recession in early 2023 after household spending, a key source of growth in Europe's economic engine, succumbed to pressures from high inflation, an estimate from the statistics office showed last month.

https://uk.style.yahoo.com/eurozone-investor-mood-darkens-due-083452126.html

[+Hammerclaw]

3 hours ago, Eldorado said:

Investors got more gloomy on prospects for the euro zone economy in June, dragged down by negative expectations for Germany, Europe's biggest economy, a survey showed on Monday.

"A look at the Sentix data of the largest economy then clearly shows that the cause of the misery in Euroland is probably linked to the weakness of the German economy," it said. "The biggest problem child in the Eurozone remains Germany."

The German economy fell into recession in early 2023 after household spending, a key source of growth in Europe's economic engine, succumbed to pressures from high inflation, an estimate from the statistics office showed last month.

https://uk.style.yahoo.com/eurozone-investor-mood-darkens-due-083452126.html

Also, the looming spectre of a quarter of the population reaching retirement age this decade. They will have to retool their consumer-based economy to account for it.

[pellinore]

1 hour ago, Hammerclaw said:

Also, the looming spectre of a quarter of the population reaching retirement age this decade. They will have to retool their consumer-based economy to account for it.

I've not seen that given as a direct cause for Germany's current problems, most sources say it is tied up with their reliance on Russian energy and the war in Ukraine.

Germany can't escape recession in 2023, warns the country's leading economic institute | This is Money

Edited June 6 by pellinore

[Eldorado]

The euro zone economy was in a technical recession in the first three months of 2023, data from European statistics agency Eurostat showed on Thursday, after downward revisions of growth in both the first quarter and the final quarter of 2022.

Gross domestic product (GDP) for the 20-country euro zone fell by 0.1% in the first quarter compared with the fourth of 2022 and was 1.0% up from a year earlier, Eurostat said in a statement.

That compared with flash estimates of growth of 0.1% and 1.3% published on May 16. Economists polled by Reuters had forecast on average respectively zero and 1.2% expansion.

https://www.msn.com/en-gb/money/other/euro-zone-slips-into-recession-after-germany-ireland-revisions/ar-AA1chNyO?

[pellinore]

18 hours ago, Eldorado said:

The euro zone economy was in a technical recession in the first three months of 2023, data from European statistics agency Eurostat showed on Thursday, after downward revisions of growth in both the first quarter and the final quarter of 2022.

Gross domestic product (GDP) for the 20-country euro zone fell by 0.1% in the first quarter compared with the fourth of 2022 and was 1.0% up from a year earlier, Eurostat said in a statement.

That compared with flash estimates of growth of 0.1% and 1.3% published on May 16. Economists polled by Reuters had forecast on average respectively zero and 1.2% expansion.

https://www.msn.com/en-gb/money/other/euro-zone-slips-into-recession-after-germany-ireland-revisions/ar-AA1chNyO?

I think all the large economies are either in recession or skirting recession, including the US. The world has taken some major hits- Covid was probably the worst by a long margin, followed by the Ukraine War, and now we have the Khorkova Dam (sp.) being breached which is going to devastate food production. The important thing is whether countries have the potential to attract investment to grow out of it.