German entrepreneurs' mood at its lowest level since outset of pandemic

German businesspeople's optimism hit its lowest level in July since the start of the COVID-19 pandemic, as inflation and limited energy supplies threaten the German economy with a downturn, Bloomberg reports with reference to the Institute for Economic Research in Munich (Ifo).

“Germany is on the verge of an economic recession. Economic development is hampered by high energy prices. According to entrepreneurs, business activity will deteriorate significantly in the coming months,” said Ifo President Clemens Fuest.

German researchers also pay attention to the cost of energy resources, the dynamics of which no less affects the country's economy. “In the coming months, energy prices will play a more important role for the German economy. The increase in interest rates has already been taken into account to a certain extent,” Fuest added.