FX.co ★ Der Spiegel: Germany to face worst recession in decades

Germany, Europe's largest economy, may soon get a leading role in a very tragic play, an analyst for Der Spiegel thinks. An upcoming recession and energy crisis promise a grim future for the flagship economy. This is going to be an economic drama in five acts. The author of the article predicts the following scenario that will unfold rapidly. The first victims of the tragedy will be German manufacturers that are highly dependent on electricity and gas. In the second act, they will pass on the burden to other sectors and enterprises. “The question is no longer whether the crisis will come. The question is how bad it will be and how long it will last. This tragedy has five acts, and it begins with the energy price shock,” the expert explains. The panic is spreading, and many company CEOs and union leaders are openly voicing their concerns. The affected companies will have no other choice but to pass on the price increase to consumers. And here comes the next stage which “raises the curtain on the third act, the one with the makings of an economic disaster: consumer sentiment is worse than it has ever been in postwar German history,” Der Spiegel writes. The final act of the tragedy is a recession, and it seems that the country will soon be right in the middle of one. This is how the play ends.