Germany: stagnation rather than recession

Defying expectations, Germany avoided a recession last winter. The mild weather helped but the gas shock was cushioned mainly thanks to adaptations by industrial firms and the government response. The security of future supply has been strengthened in the process, reducing the risk of energy shortages next winter. Yet, the economic outlook remains gloomy. The German growth model based on industrial goods exports no longer works in a world in which globalisation has reached its li...