Germany now the eurozone’s ‘problem child’ as the powerhouse economy remains in recession 

Slump: Germany fell into recession in early 2023

Germany has been branded the ‘problem child’ of the eurozone economy as confidence among investors ebbs away.

Economic analysis company Sentix said its monthly survey of investors’ views on the 20-member euro area, which gauges whether they are positive or negative about growth prospects, fell to minus 17 points for June, from minus 13.1 in May.

‘The cause of the misery in euroland is probably linked to the weakness of the German economy,’ the report said. ‘The biggest problem child in the eurozone remains Germany.’

The economy fell into recession in early 2023. The Sentix index in June fell to the lowest since November last year, at minus 21.1, from minus 14.5 the previous month.

‘No matter how hard the [German] Federal Minister of Economics tries, the story he is writing is not a positive summer fairytale,’ the survey said.