Ifo economist: German economy starting the year with cautious optimism

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  • There probably won’t be a recession
  • But Q1 GDP will probably shrink slightly, mainly due to consumption

It’s only January and they are already sounding overly optimistic in my view. The less harsh winter certainly helped but we will see if inflation pressures will keep easing as they expect it to or if there will be yet another twist in the months ahead.

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