German Chancellor Angela Merkel told German citizens that the coronavirus disaster was the greatest challenge the nation has faced since World War II. The Ifo Institute (the gold standard measurement of the movement of the German economy) and the opinions of German executives have begun to reflect that sentiment. The Ifo Business Climate Index cratered in March:
Sentiment among German managers has worsened drastically. The preliminary ifo Business Climate Index plummeted from 96.0 points (seasonally adjusted) in February to 87.7 points in March. This marks the biggest drop since 1991 and brings the index to its lowest level since August 2009. Companies’ expectations in particular have darkened as never before. Assessments of the current situation have also worsened considerably. The German economy is speeding into recession.
Similar surveys of executives around the world are likely to post similar results.
[in-text-ad]
Perhaps the only positive news for Germany is that it has one of the world’s largest economies and a broad array of successful manufacturers and technology giants. Nevertheless, Merkel said that two-thirds of the population could become infected, which would challenge even an economy as successful as Germany’s.
If Germany’s business climate is deteriorating, so is that of every nation in the European Union. Many are already weak, in particular Italy, where COVID-19 has been the most devastating. The economies of France and Spain are not robust. This means a recession akin to the one in 2008 and 2009 is likely to grip Europe again.
Germany is in for great trouble. The rest of Europe will need to fight for economic survival.
100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.