Germany: on the brink of recession

In 2021, the German economy underperformed the rest of the eurozone owing to its greater exposure to the supply chain disruptions triggered by the pandemic. The received wisdom until recently was that there would be a significant catch-up in 2022 once the health situation had returned to normal. The war in Ukraine has undermined this scenario. Far from letting up, input price inflation has been turbocharged. The risk of energy supply outages is hanging over economic activity like...