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German recession ‘inevitable’ – Deutsche Bank

Deutsche Bank news

Soaring energy costs are hurting EU’s largest economy, according to CEO Christian Sewing.

The engine of European economic development, Germany, is set for a contraction, Deutsche Bank CEO Christian Sewing warned this week, as cited by CNBC.

According to the media outlet, Sewing said in a speech at the Handelsblatt Banking Summit in Frankfurt that the war in Ukraine “destroyed a number of certainties” on which the global economic system had been predicated over the past few decades.

He reportedly cited disrupted global value and supply chains, along with a bottleneck in the labor market and a shortage of gas and electricity leading to soaring costs, as key reasons why the Eurozone inflation is at record highs.

“As a result, we will no longer be able to avert a recession in Germany. Yet we believe that our economy is resilient enough to cope well with this recession — provided the central banks act quickly and decisively now,” Sewing reportedly stated.

The Deutsche chief pointed out that, for now, many in Germany still have pandemic savings to fall back on in order to meet skyrocketing energy costs, while most companies remain “sufficiently financed.”

“But the longer inflation remains high, the greater the strain and the higher the potential for social conflict,” he warned.

Sewing also urged the German leaders to accelerate the nation’s decoupling from China. He indicated that China accounts for around 8% of German exports and 12% of imports, while more than one-tenth of the sales of companies listed on the German DAX stock index go to China.

“Reducing this dependency will require a change no less fundamental than decoupling from Russian energy,” the chief executive said.

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Source:RT News

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4 COMMENTS

  1. Should read “Crash of epic proportions”
    A few cold showers should bring sobering thoughts
    About idiotic sanctions that have backfired and blown up in Germany’s face
    Perhaps by design
    Sancs a lot!

  2. The cost of electricity per unit (Kwh) is about 30 cents in NZ. Russia was supplying gas using which Germany and other countries can generate power for less than five to 10 cents. This is cheaper than the cost anywhere else in the world. Germans are so stupid to kill their golden egg laying goose. Germany is not a soveriegn country in any way. It is still occupied by US army and they use their German bases to wage war against anyone and no permission is needed from the German public. If the colony becomes too strong, US wont let it grow further. German may even face depression without Russian cheap energy. Both France and germnay betrayed trust by dishonouring the two Minsk accords, and so they deserve what they face on the engergy front.

    • Do not take the jabs, no matter what disease.

      Do not eat the bugs, no matter how hungry you are.

      Do not use their electronic currencies, and do not register for their social credit apps.

      Spend as much time as you can outside in the sunshine. Learn some practical skills you might need in the years to come. And for God’s sake get some exercise.

      If the news tells you to panic you know there’s really nothing to worry about, and if they tell you to remain calm you know it’s time to panic and GTFO.

      Whatever they tell you to do, just do the opposite, and you’ll be fine. Resist and fight back and defy them in any and every way you can, no matter how small.

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