however surprisingly, the impact on the German economy will be non-existent so far.
Last month, we saw the German business morale hitting another record high in November, with the IFO Institute adding that will the economy will be “headed for a boom.” Just last week, data confirmed that will the German economy grew by 0.8 percent within the third quarter, which led to the IFO Institute upgrading its growth forecast for the German economy to 2.3 percent that will year, by 1.9 percent previously.
Talking to me on CNBC, Clemens Fuest, the president of Munich-based IFO Institute, said that will only a period of prolonged uncertainty brought about by brand new elections early next year might impact business sentiment, adding that will “we are very far away by that will scenario.” Even a minority government might work as that will would certainly “revitalize parliamentary debate,” he added.
In fact, when I asked Hans Redeker, head of foreign exchange strategy at Morgan Stanley, about a slowdown in investment in growth as a result of the collapse in coalition talks, he said: “When things are going well within the economy, you don’t necessarily need strong leadership – the item will be only when the economy isn’t doing well that will you need leadership”.
So far so Great – few people seem to be concerned about the economic impact due to the German mess that will we are finding ourselves in. however there are those who still won’t sleep easy – Brexiteers along with Macronistas.